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Feb 28

Nike Q3 2025 Earnings Report

Nike reported a revenue decline and lower net income for Q3 2025.

Key Takeaways

Nike's third-quarter fiscal 2025 results showed a 9% year-over-year decline in revenue to $11.27 billion, driven by lower sales across all regions. Net income fell 32% to $794 million, and gross margin contracted to 41.5%. The company's diluted EPS was $0.54, while non-GAAP EPS excluding restructuring charges was not applicable this quarter. Operating income also declined significantly.

Revenue decreased by 9% year-over-year to $11.27 billion.

Net income dropped 32% to $794 million.

Gross margin fell to 41.5%, down 330 basis points.

Nike Direct revenues declined by 12%, impacted by digital sales decrease.

Total Revenue
$11.3B
Previous year: $12.4B
-9.3%
EPS
$0.54
Previous year: $0.98
-44.9%
Gross Margin
41.5%
Previous year: 44.8%
-7.4%
Demand Creation Expense
$1.09B
Previous year: $1.01B
+7.6%
Operating Overhead Expense
$2.8B
Previous year: $3.22B
-12.9%
Gross Profit
$4.68B
Previous year: $5.56B
-15.9%
Cash and Equivalents
$8.6B
Previous year: $8.96B
-4.0%
Free Cash Flow
$1.71B
Previous year: $1.92B
-10.8%
Total Assets
$37.8B
Previous year: $37.4B
+1.2%

Nike

Nike

Nike Revenue by Segment

Nike Revenue by Geographic Location

Forward Guidance

Nike maintains its guidance for the second half of fiscal 2025 with a focus on driving brand momentum and product innovation amid a dynamic market.

Positive Outlook

  • Strong product innovation pipeline expected.
  • Renewed brand momentum through athlete storytelling.
  • Continued investment in digital transformation.
  • Focus on efficiency and cost optimization.
  • Consistent shareholder returns including dividends and buybacks.

Challenges Ahead

  • Ongoing inventory challenges across regions.
  • Persistent discounting affecting margins.
  • Continued weakness in digital sales channels.
  • Currency headwinds impacting reported results.
  • Macroeconomic uncertainty remains a risk factor.

Revenue & Expenses

Visualization of income flow from segment revenue to net income