"When Nike is at its best, we bring excitement. We invite consumers into the world of sport and sport culture."
— Elliott Hill
03Detailed Report
NKE
NIKE Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 4, 2026
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Executive Summary
In Q2 2025, NIKE Inc. reported a revenue decline of 8% year-over-year, reflecting ongoing challenges within its classic footwear franchises alongside broader market conditions. Despite these pressures, the company remains committed to revitalizing its brand and transforming operational strategies under newly reappointed CEO Elliott Hill.
Management outlined immediate actions to enhance product offerings, improve marketing engagement, and foster relationships with wholesale partners as key drivers of future growth. The focus on positioning sport at the core of NIKE's identity aims to reinvigorate both consumer engagement and profitability, amid a landscape characterized by competitive pressures and shifting consumer preferences.
Key Performance Indicators
Revenue
Decreasing
12.35B
QoQ: 6.60% | YoY: -7.72%
Gross Profit
Decreasing
5.39B
43.62% margin
QoQ: 2.51% | YoY: -9.75%
Operating Income
Decreasing
1.38B
QoQ: 14.47% | YoY: -24.16%
Net Income
Decreasing
1.16B
QoQ: 10.66% | YoY: -26.30%
EPS
Decreasing
0.78
QoQ: 11.43% | YoY: -25.00%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Financial Metrics
- Revenue: $12.354 billion, down 8% YoY, impacted by franchise management actions.
- Gross Profit: $5.389 billion with a margin of 43.6%, down from 44.6%. Higher markdowns and strategic pricing actions contributed to this decline.
- Operating Income: $1.384 billion, yielding an operating margin of 11.2%, indicating a YoY decrease of 24.16%.
- Net Income: $1.163 billion or $0.78 per diluted share, reflecting a 26.3% decline from the previous year.
### Cash Flow and Balance Sheet
- Net Cash Provided by Operating Activities: $1.049 billion, supporting robust operating cash flow.
- Cash at Period-End: $7.979 billion, alongside short-term investments of $1.782 billion, reflecting healthy liquidity.
- Total Assets: $37.959 billion vs. Total Liabilities: $23.922 billion, indicating a strong equity position with total stockholders' equity of $14.037 billion, translating to a debt-equity ratio of 0.860.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12.35B
-7.72%
6.60%
Gross Profit
5.39B
-9.75%
2.51%
Operating Income
1.38B
-24.16%
14.47%
Net Income
1.16B
-26.30%
10.66%
EPS
0.78
-25.00%
11.43%
Key Financial Ratios
Gross Profit Margin
Good
43.60%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
11.20%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
9.41%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
3.06%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
8.29%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
2.22
Current ratio shows adequate liquidity to meet short-term obligations
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