Did NIKE provide guidance for fiscal 2026?

No. This 8-K exhibit does not include formal fiscal 2026 revenue or earnings guidance. Management said it expects headwinds to moderate after the fourth quarter, which was the largest financial impact from its Win Now actions, and it will likely provide more detail on the June 26, 2025 earnings call.

What drove the sharp decline in profitability in the fourth quarter?

The main drivers were a 440 basis point drop in gross margin to 40.3%, caused by higher discounts and unfavorable channel mix, and a 15% increase in demand creation expense to $1.3B. Operating overhead fell 3%, partly offsetting these pressures. Q4 EBIT margin dropped to 2.7% from 13.3%.

Is NIKE's digital business still declining?

Yes. NIKE Brand Digital revenue fell 26% in Q4 and 20% for the full fiscal year, which drove the overall decline in NIKE Direct. NIKE-owned stores were roughly flat for the year and grew 2% in Q4, so store performance partially cushioned the digital weakness.

Is NIKE's dividend at risk given lower earnings and cash?

The filing shows no sign of a dividend cut. Dividends declared rose to $1.57 per share for the year, and Q4 dividends were $591M, up 6%. Cash and short-term investments fell to $9.2B, and full-year dividends of $2.3B plus $3.0B in buybacks exceeded free cash generation, so investors should monitor how the company balances capital returns against lower earnings.

NKE 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed June 26, 2025. Cited figures are marked; the original filing is the authoritative source.

NIKE reported fiscal 2025 fourth-quarter and full-year results for the period ended May 31, 2025, showing a sharp deterioration in profitability.

Full-year revenue fell 10% on a reported basis (9% currency-neutral) to $46.3 billion^a, while Q4 revenue declined 12% to $11.1 billion. NIKE Direct revenue dropped 14% in Q4, driven by a 26% decline in NIKE Brand Digital, and wholesale fell 9%. Converse revenue declined 26% in the quarter.

Q4 gross margin contracted 440 basis points to 40.3% on higher discounts and channel mix shifts, and Q4 EBIT margin fell to 2.7% from 13.3%. Q4 diluted EPS was $0.14^b, down 86%, and full-year diluted EPS was $2.16, down 42%. Management characterized the fourth quarter as the peak of the financial impact from its "Win Now" turnaround actions and said it expects headwinds to moderate.

The company is realigning its teams around a "sport offense" strategy focused on key sports, product portfolio completeness, storytelling, and marketplace growth. The filing does not include formal forward guidance for fiscal 2026, so investors will need to rely on management commentary and the upcoming earnings call for a view on the timing of recovery. From a balance-sheet and capital-allocation perspective, the company remains financially stable but is under pressure.

Cash and short-term investments declined about $2.4 billion to $9.2 billion^c as operating cash flow was outweighed by share repurchases, dividends, a bond repayment, and capital expenditures. Inventories were flat at $7.5 billion, and accounts payable rose 22%. NIKE continued to return capital, distributing about $5.3 billion to shareholders in fiscal 2025, including $2.3 billion in dividends, extending its streak to 23 consecutive years of dividend increases.

02—Key points

Key Highlights

Full-year FY2025 revenue of $46.3B declined 10% reported (9% currency-neutral); NIKE Brand revenue fell 9% to $44.7B with declines in all geographies.
Q4 revenue of $11.1B fell 12%, with NIKE Direct down 14% (NIKE Brand Digital down 26%) and wholesale down 9%.
Gross margin compressed 440 bps in Q4 to 40.3% and 190 bps for the year to 42.7%, driven by higher discounts, channel mix, and inventory obsolescence reserves.
Q4 EBIT fell to $296M from $1.67B, a 2.7% EBIT margin versus 13.3% a year earlier; Q4 net income was $211M and diluted EPS was $0.14, down 86%.
Q4 effective tax rate rose to 33.6% from 13.1%, further weighing on earnings; full-year diluted EPS was $2.16, down 42%.
Converse revenue declined 26% in Q4 to $357M and 19% for the year to $1.7B; management pointed to the Win Now turnaround and a 'sport offense' realignment as next steps.
Cash and short-term investments fell to $9.2B (down about $2.4B), while the company returned $5.3B to shareholders in FY2025, including $2.3B in dividends and $3.0B in buybacks.

03—Questions

Frequently Asked Questions

Did NIKE provide guidance for fiscal 2026?
No. This 8-K exhibit does not include formal fiscal 2026 revenue or earnings guidance. Management said it expects headwinds to moderate after the fourth quarter, which was the largest financial impact from its Win Now actions, and it will likely provide more detail on the June 26, 2025 earnings call.
What drove the sharp decline in profitability in the fourth quarter?
The main drivers were a 440 basis point drop in gross margin to 40.3%, caused by higher discounts and unfavorable channel mix, and a 15% increase in demand creation expense to $1.3B. Operating overhead fell 3%, partly offsetting these pressures. Q4 EBIT margin dropped to 2.7% from 13.3%.
Is NIKE's digital business still declining?
Yes. NIKE Brand Digital revenue fell 26% in Q4 and 20% for the full fiscal year, which drove the overall decline in NIKE Direct. NIKE-owned stores were roughly flat for the year and grew 2% in Q4, so store performance partially cushioned the digital weakness.
Is NIKE's dividend at risk given lower earnings and cash?
The filing shows no sign of a dividend cut. Dividends declared rose to $1.57 per share for the year, and Q4 dividends were $591M, up 6%. Cash and short-term investments fell to $9.2B, and full-year dividends of $2.3B plus $3.0B in buybacks exceeded free cash generation, so investors should monitor how the company balances capital returns against lower earnings.

04—Continue

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