"...we expect strong growth in our performance footwear... we’re excited about the product that we’re bringing there." - Matthew Friend, CFO
— Matthew Friend
03Detailed Report
NKE
NIKE Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 4, 2026
Swipe to view all report sections
Executive Summary
NIKE Inc (NKE) has reported disappointing results for the first quarter of fiscal year 2025, with a 10% decline in revenue year-over-year, highlighting challenges in their direct-to-consumer channels and overall sales strategies. The company's new leadership under Elliott Hill, following the retirement of John Donahoe is expected to steer the organization towards revitalized growth strategies. Several initiatives are underway to gradually restore brand momentum through diversified product offerings and targeted marketing. Squarely hit by decreased unit sales and increased inventory pressure, NIKE's financial indicators suggested an immediate need for strategic recalibration as consumer demand shifts.
As the company aims to regain footing in key markets, management emphasized the elevation of their product portfolio and brand storytelling to boost consumer engagement. However, overall financial health remains a concern as reflected in profitability metrics and cash flow, prompting a cautious outlook for the remainder of the fiscal year.
Key Performance Indicators
Revenue
Decreasing
11.59B
QoQ: -8.07% | YoY: -10.43%
Gross Profit
Decreasing
5.26B
45.36% margin
QoQ: -6.69% | YoY: -8.09%
Operating Income
Decreasing
1.21B
QoQ: -23.72% | YoY: -24.63%
Net Income
Decreasing
1.05B
QoQ: -29.93% | YoY: -27.52%
EPS
Decreasing
0.70
QoQ: -29.29% | YoY: -26.32%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue declined to $11.59 billion with a gross profit margin of 45.4%, reflecting a 120 basis point improvement from the prior year. Operating income also decreased by 24.6% to $1.21 billion, primarily due to increased selling and marketing expenses that outpaced gains from gross margin improvements. The company reported a net income of $1.05 billion, translating to an EPS of $0.70, a 26.3% decrease versus the prior year. NIKE Direct revenue fell 12%, with NIKE Digital suffering a 20% decline due to reduced traffic and promotional pressures in the marketplace. Effective tax rate stood at 19.6%, contributing to the net income decline alongside significant operational challenges.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
11.59B
-10.43%
-8.07%
Gross Profit
5.26B
-8.09%
-6.69%
Operating Income
1.21B
-24.63%
-23.72%
Net Income
1.05B
-27.52%
-29.93%
EPS
0.70
-26.32%
-29.29%
Key Financial Ratios
Gross Profit Margin
Good
45.40%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
10.40%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
9.07%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
2.78%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
7.54%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
2.36
Current ratio shows adequate liquidity to meet short-term obligations
Nike, Inc. (NKE) Q2 FY2026 Earnings Review: Modest Revenue Growth Amid Tariff-driven Margin Pressure; North America Leads Recovery as Nike’s Sport O...