Sportswear giant Nike has reported a 9% decrease in total revenue to $11.26bn in the third quarter (Q3) of fiscal 2025 (FY25), compared with $12.42bn achieved in the corresponding quarter of the previous year.
The period concluding on 28 February saw a similar 9% reduction in Nike brand revenue, driven by decline across all regions.
The contraction was mirrored in the performance of Nike Direct, which suffered a 12% setback, largely attributable to a significant 15% fall in Nike brand digital sales and a more modest 2% dip in revenues from Nike-owned stores.
Wholesale figures followed suit with a 7% decline during the third fiscal quarter of 2025.
One of Nike's subsidiaries saw its revenues drop 18%, totalling $405m for Q3 FY25.
During the quarter, the brand’s net income took a substantial hit, falling 32% to $794m compared to $1.17m in the same period of the previous year.
This downturn was reflected in diluted earnings per share, which decreased by 30%, moving from $0.77 to $0.54 year-on-year.
Gross profit for Nike followed the downward trend, registering a 16% drop to $4.67bn in Q3 FY25, compared to $5.56bn in the same quarter of the previous year.
The company's gross margin contracted by 330 basis points to 41.5%, adversely affected by heightened discounting activity, increased reserves for inventory obsolescence, rising product costs and shifts in the channel mix, partially mitigated by restructuring charges incurred during the previous year.
Nike's selling and administrative expenses were trimmed by 8% in Q3 FY25, amounting to $3.88bn.
The company’s inventories were down by 2% to $7.5bn over the quarter.
NIKE president and CEO Elliott Hill stated: "The progress we made against the 'Win Now' strategic priorities we committed to 90 days ago reinforces my confidence that we are on the right path. What's encouraging is NIKE made an impact this quarter leading with sport – through athlete storytelling, performance products and big sport moments."
In February 2025, Nike partnered American media personality Kim Kardashian’s shapewear brand SKIMS for NikeSKIMS, a new brand set to disrupt the global activewear market with bold innovation for women athletes.
