10-KPeriod: FY2025

NIKE, Inc. Annual Report, Year Ended May 31, 2025

Filed July 17, 2025For Securities:NKE

Summary

NIKE, Inc. reported revenues of $46.3 billion for fiscal year 2025, a decrease of 10% from $51.4 billion in fiscal year 2024. This decline was primarily driven by a 13% decrease in NIKE Direct revenues and a 7% decrease in wholesale revenues, reflecting strategic actions taken by the company to reduce inventory and rebalance its product mix. Gross margin contracted by 190 basis points to 42.7%, impacted by higher discounts and inventory obsolescence reserves, though partially offset by lower product costs. Despite the revenue and margin headwinds, NIKE Inc. continued to focus on innovation and brand building, increasing investment in demand creation. The company returned $5.3 billion to shareholders through share repurchases and dividends. While facing challenging market conditions and strategic shifts, NIKE's operational structure and global brand presence remain strong. Investors should monitor the impact of ongoing marketplace repositioning and strategic inventory management on future revenue and profitability trends.

Financial Highlights

48 data points
Beta

Revenue

$46.31B

42.7% Gross Margin

Net Income

$3.22B

7.0% Net Margin

EPS (Diluted)

$2.16

Total Assets

$36.58B

Cash & Equivalents

$7.46B

Free Cash Flow

$3.27B

Financial Statements
Beta
Revenue$46.31B
Cost of Revenue$26.52B
Gross Profit$19.79B
SG&A Expenses$16.09B
Net Income$3.22B
EPS (Basic)$2.17
EPS (Diluted)$2.16
Shares Outstanding (Basic)1.48B
Shares Outstanding (Diluted)1.49B

Key Highlights

  • 1Revenues decreased by 10% to $46.3 billion in fiscal year 2025, down from $51.4 billion in fiscal year 2024.
  • 2NIKE Direct revenues declined by 13% to $18.8 billion, while wholesale revenues decreased by 7%.
  • 3Gross margin decreased by 190 basis points to 42.7%, primarily due to higher discounts and increased inventory obsolescence reserves.
  • 4Inventories remained flat year-over-year at $7.5 billion.
  • 5The company returned $5.3 billion to shareholders via share repurchases ($3.0 billion) and dividends ($2.3 billion).
  • 6Return on Invested Capital (ROIC) decreased to 20.2% from 34.9% in the prior year.
  • 7Operating overhead expenses decreased by 7%, influenced by prior year restructuring charges.

Frequently Asked Questions

The primary drivers for the 10% revenue decrease in fiscal year 2025 were strategic actions taken by NIKE to reduce inventory and rebalance its product portfolio. This included higher discounts across NIKE Direct and increased sales returns with wholesale partners, which impacted both NIKE Direct and wholesale revenues.

NIKE's gross margin decreased by 190 basis points to 42.7% in fiscal year 2025. Key factors contributing to this decline were higher discounts, changes in the channel mix, and increased inventory obsolescence reserves. These were partially offset by lower product costs.

NIKE is actively managing its inventory by reducing the supply of certain footwear products in the marketplace to make way for new and innovative offerings. This involves liquidating excess inventory through increased markdowns on NIKE Direct platforms and offering higher discounts to wholesale partners. The company is also repositioning NIKE Brand Digital as a full-price platform and reinvesting in wholesale distribution.

In fiscal year 2025, NIKE returned a total of $5.3 billion to its shareholders. This was comprised of $3.0 billion in share repurchases and $2.3 billion in dividends.