01—Abstract
Summary
Summary of the 10-K filed July 17, 2025. Cited figures are marked; the original filing is the authoritative source.
NIKE, Inc. reported revenues of $46.3 billiona for fiscal year 2025, a decrease of 10% from $51.4 billion in fiscal year 2024.
This decline was primarily driven by a 13%b 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 billionc 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.
02—Key points
Key Highlights
- Revenues decreased by 10% to $46.3 billion in fiscal year 2025, down from $51.4 billion in fiscal year 2024.
- NIKE Direct revenues declined by 13% to $18.8 billion, while wholesale revenues decreased by 7%.
- Gross margin decreased by 190 basis points to 42.7%, primarily due to higher discounts and increased inventory obsolescence reserves.
- Inventories remained flat year-over-year at $7.5 billion.
- The company returned $5.3 billion to shareholders via share repurchases ($3.0 billion) and dividends ($2.3 billion).
- Return on Invested Capital (ROIC) decreased to 20.2% from 34.9% in the prior year.
- Operating overhead expenses decreased by 7%, influenced by prior year restructuring charges.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed July 17, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $46.31B$51.36B | −9.8% |
| Cost of Revenue | $26.52B$28.48B | −6.9% |
| Gross Profit | $19.79B$22.89B | −13.5% |
| SG&A Expenses | $16.09B$16.58B | −2.9% |
| Net Income | $3.22B$5.70B | −43.5% |
| EPS (Basic) | $2.17$3.76 | −42.3% |
| EPS (Diluted) | $2.16$3.73 | −42.1% |
| Shares Outstanding (Basic) | 1.48B1.52B | −2.2% |
| Shares Outstanding (Diluted) | 1.49B1.53B | −2.8% |
05—Questions
Frequently Asked Questions
What were the primary drivers of NIKE's revenue decrease in fiscal year 2025?
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.
How did NIKE's gross margin perform in fiscal year 2025, and what were the contributing factors?
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.
What is NIKE's approach to managing inventory and marketplace rebalancing?
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.
How did NIKE return capital to shareholders in fiscal year 2025?
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.
06—Continue