Nike Revenue Falls 10% to $46.3 Billion Amid Strategic Overhaul

Nike unveils a strategic reset with its “sport offense” initiative after posting a 10% revenue decline for fiscal 2025.

NIKE  has just released its fiscal 2025 fourth quarter and full year results, marking a pivotal moment for the global sportswear giant. The numbers reflect both the challenges of the past year and a bold new direction as the company launches its “sport offense” strategy.

Revenue Recap: Facing Downturns, Planning for Growth

• Full-year revenues landed at $46.3 billion, a 10% drop from last year.

• Fourth quarter revenues came in at $11.1 billion, down 12%.

• NIKE Direct revenues for Q4 were $4.4 billion, a 14% decline, while wholesale revenues dropped 9% to $6.4 billion.

• Gross margin for Q4 fell by 440 basis points to 40.3%.

• Diluted earnings per share for the quarter stood at $0.14.

Leadership’s Candid Take: “Not Where We Want to Be”

Elliott Hill, President & CEO, didn’t mince words:

"While our financial results are in-line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions."

He added:

"As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth."

What Is the “Sport Offense” Realignment?

NIKE’s new approach is all about:

• Driving distinction within key sports

• Building a complete product portfolio

• Creating stories to inspire and connect with consumers

• Elevating and growing the entire marketplace

CFO’s Perspective: Headwinds and Confidence

Matthew Friend, Executive Vice President & CFO, commented:

"The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here. I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control and executing our Win Now actions."

Deeper Dive: Q4 and Full Year Performance

Q4 Highlights

• NIKE Brand revenues: $10.8 billion, down 11%

• NIKE Direct: $4.4 billion, down 14%, with a 26% drop in digital offset by a 2% rise in NIKE-owned stores

• Wholesale: $6.4 billion, down 9%

• Converse: $357 million, down 26%

• Net income: $0.2 billion, down 86%

• EPS: $0.14, down 86%

Full Year Highlights

• NIKE Brand revenues: $44.7 billion, down 9%

• NIKE Direct: $18.8 billion, down 13% (digital down 20%, stores flat)

• Wholesale: $25.9 billion, down 7%

• Converse: $1.7 billion, down 19%

• Net income: $3.2 billion, down 44%

• EPS: $2.16, down 42%

Balancing the Books: Inventory and Cash

• Inventories: $7.5 billion, flat year-over-year

• Cash and equivalents: $9.2 billion, down $2.4 billion, mainly due to share repurchases, dividends, and capital expenditures

Rewarding Shareholders: Dividends and Buybacks

NIKE continues its impressive streak—23 consecutive years of increasing dividend payouts.

• Q4 returns: $0.8 billion to shareholders

  • Dividends: $591 million, up 6%

  • Share repurchases: $202 million (3.2 million shares)

• Fiscal 2025: $5.3 billion returned

  • Dividends: $2.3 billion, up 6%

  • Share repurchases: $3.0 billion (37.6 million shares)

• Total shares repurchased under the current program: 122.6 million (approx. $12.0 billion)

Looking Ahead: Cautious Optimism

NIKE’s leadership is clear-eyed about the challenges but optimistic about the path forward. The “sport offense” strategy aims to reignite growth by focusing on core strengths and deeper consumer connections. As the company enters a new fiscal year, all eyes are on how these bold moves will reshape the future of the Swoosh.

For more on NIKE’s financials, visit the NIKE Investor Relations site. For the latest news and updates, check out NIKE News and follow @NIKE. The upcoming conference call will be available live and archived for replay.