Nike's 'Sport Offense' strategy aims to reposition business after sharp revenue decline
Nike announced its financial results for the fourth quarter and full year, which concluded on May 31, 2025. The athletic footwear and apparel giant reported full-year revenues of 46.3 billion dollars, marking a 10 percent decrease on a reported basis. The fourth quarter similarly saw a downturn, with revenues reaching 11.1 billion dollars, down 12 percent.
"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," said Elliott Hill, president & CEO, Nike, Inc. "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," Hill added.
The fourth quarter performance revealed significant declines across key segments. Nike Direct revenues fell 14 percent to 4.4 billion dollars on both a reported and currency-neutral basis, largely due to a 26 percent decrease in Nike Brand Digital sales, partially offset by a 2 percent increase in Nike-owned stores. Wholesale revenues for the quarter also decreased by 9 percent to 6.4 billion dollars.
Furthermore, Converse revenues experienced a drop of 26 percent to 357 million dollars, impacted by declines across all territories.
Gross margin for the fourth quarter decreased by 440 basis points to 40.3 percent. Diluted earnings per share for the quarter stood at 14 cents, representing an 86 percent decrease, while net income also saw an 86 percent decline to 0.2 billion dollars.
"The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here," said Matthew Friend, executive vice president & chief financial officer, Nike.
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