Companies

Nike reports fourth-quarter and full year results

Jul 2, 2025 United States

The US-based sportswear company saw declines in revenue for both the quarter and full year, but remains hopeful, repositioning through a sport-focused strategy to renew consumer connection

“While our financial results are in line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we are making through our Win Now actions”, says Elliott Hill, President and Chief Executive Officer at Nike.

Results

Nike reported financial results for the fourth quarter and full fiscal year ending on the 31^st of May, 2025, revealing challenges across both periods. Fourth-quarter revenues stood at 11.1 billion US dollars, down by 12% compared to the same period last year. Full-year revenues totalled 46.3 billion US dollars, reflecting a 10% decline year-over-year. Declines were broad-based, affecting all major geographies and both the Nike and Converse brands.

Nike Direct (a direct-to-consumer strategy) revenues in the fourth quarter were 4.4 billion US dollars, down by 14%, with digital sales dropping by 26% compared to the same quarter in 2024. For the full year, Nike Direct revenues reached 18.8 billion US dollars, a decrease of 13%, driven by a 20% decline in digital sales and flat store performance. Wholesale revenues also saw declines, falling by 9% in the fourth quarter and 7% across the full year, on a comparable basis.

In the fourth quarter, gross margin dropped by 440 basis points year-on-year to 40.3%, impacted by higher discounts and an unfavourable channel mix. Full-year gross margin decreased by 190 basis points to 42.7% due to similar factors, alongside higher inventory obsolescence reserves. Fourth-quarter net income fell sharply to 0.2 billion US dollars, an 86% decline, while full-year net income dropped by 44% to 3.2 billion US dollars.

Selling and administrative expenses rose slightly by 1% to 4.1 billion US dollars in the fourth quarter and declined by 3% to 16.1 billion US dollars over the full year, on a comparable basis. Demand creation expenses, however, increased by 15% in the fourth quarter and by 9% for the full year. Operating overhead expenses fell in both periods, reflecting lower wage-related costs and reduced administrative spending compared to the same periods in 2024.

Balance Sheet

Nike’s balance sheet remained stable, with inventories at 7.5 billion US dollars, flat from the prior year. Cash and short-term investments totalled 9.2 billion US dollars, down approximately 2.4 billion US dollars, as operating cash flow was offset by share repurchases, dividends, bond repayments and capital expenditures.

Shareholder Returns

For shareholders, Nike returned 0.8 billion US dollars in the fourth quarter through 591 million US dollars in dividends, up by 6%, and 202 million US dollars in share buybacks. Across fiscal 2025, Nike returned a total of 5.3 billion US dollars, including 2.3 billion in dividends and 3.0 billion in repurchases. As of May 31, 2025, Nike had repurchased 122.6 million shares, worth approximately 12.0 billion US dollars under its current program.

“As we enter a new fiscal year, we are turning the page, and the next step is aligning our teams to lead with sport through what we are calling the sport offence. This will accelerate our Win Now actions to reposition our business for future growth”, shares Hill.

Image Credits: fashionista.com

United States Companies Nike Quarter Results Results Sportswear Year Results