Nike has reported a significant decline in both sales and profit for the fourth quarter and full fiscal year ending May 31, 2025.
Full-year revenues fell to US$46.3 billion, a 10% drop on a reported basis and 9% on a currency-neutral basis. For the fourth quarter alone, revenues stood at US$11.1 billion, down 12% year-on-year.
The company attributed the decline to weaker performance across all geographies, with its Nike Direct channel generating US$4.4 billion in Q4 revenues, down 14%. Wholesale revenues also fell by 9% to US$6.4 billion. The Converse brand saw an even sharper drop, with Q4 sales down 26% to US$357 million.
Net income for the fourth quarter was US$200 million, an 86% decline compared with the same period last year. Gross margin fell to 40.3%, largely due to increased discounting and changes in sales channels.
Nike President and CEO Elliott Hill acknowledged that the results met expectations but noted they were “not where we want them to be”. He said the company is entering the new fiscal year with a strategic reset, focusing on its new “sport offence” strategy to accelerate recovery and future growth.
Over the full fiscal year, Nike Brand revenues were US$44.7 billion, down 9%, while Converse brought in US$1.7 billion, a 19% decline. Direct-to-consumer sales totalled US$18.8 billion, down 13%, largely driven by a 20% fall in digital sales. Wholesale revenues fell 7% to US$25.9 billion.
The company’s gross margin for the year decreased to 42.7%, impacted by discounting, channel shifts and higher inventory write-downs. Net income for the year was US$3.2 billion, a 44% decrease year-on-year.
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