NIKE, Inc. Reports Fiscal 2025 Fourth Quarter and Full Year Results
26 juni, 22:15
26 juni, 22:15
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2025 fourth quarter and full year ended May 31, 2025.
"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."
The sport offense realignment will focus on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and connect with consumers, and elevating and growing the entire marketplace.
"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, Inc. "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."
Fourth Quarter Income Statement Review
Fiscal 2025 Income Statement Review
May 31, 2025 Balance Sheet Review
Shareholder Returns
NIKE continues to have a strong track record of consistently increasing returns to shareholders, including 23 consecutive years of increasing dividend payouts.
In the fourth quarter, the Company returned approximately $0.8 billion to shareholders, including:
In fiscal 2025, the Company returned approximately $5.3 billion to shareholders, including:
As of May 31, 2025, a total of 122.6 million shares have been repurchased under the current program for a total of approximately $12.0 billion.
Conference Call
NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on June 26, 2025, to review fiscal fourth quarter and full year results. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, July 17, 2025.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.'s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.
Forward-Looking Statements
This press release contains forward-looking statements regarding our expectations of our future results and our strategy, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.
* | Non-GAAP financial measures. See additional information in the accompanying Divisional Revenues, Supplemental NIKE Brand Revenue and Diluted earnings per share tables. |
NIKE, Inc. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
THREE MONTHS ENDED | % | TWELVE MONTHS ENDED | % | ||||||||||||||||||
(In millions, except per share data) | 5/31/2025 | 5/31/2024 | Change | 5/31/2025 | 5/31/2024 | Change | |||||||||||||||
Revenues | $ | 11,097 | $ | 12,606 | -12 | % | $ | 46,309 | $ | 51,362 | -10 | % | |||||||||
Cost of sales | 6,628 | 6,972 | -5 | % | 26,519 | 28,475 | -7 | % | |||||||||||||
Gross profit | 4,469 | 5,634 | -21 | % | 19,790 | 22,887 | -14 | % | |||||||||||||
Gross margin | 40.3 | % | 44.7 | % | 42.7 | % | 44.6 | % | |||||||||||||
Demand creation expense | 1,253 | 1,091 | 15 | % | 4,689 | 4,285 | 9 | % | |||||||||||||
Operating overhead expense | 2,895 | 2,997 | -3 | % | 11,399 | 12,291 | -7 | % | |||||||||||||
Total selling and administrative expense | 4,148 | 4,088 | 1 | % | 16,088 | 16,576 | -3 | % | |||||||||||||
% of revenues | 37.4 | % | 32.4 | % | 34.7 | % | 32.3 | % | |||||||||||||
Interest expense (income), net | (22 | ) | (53 | ) | — | (107 | ) | (161 | ) | — | |||||||||||
Other (income) expense, net | 25 | (127 | ) | — | (76 | ) | (228 | ) | — | ||||||||||||
Income before income taxes | 318 | 1,726 | -82 | % | 3,885 | 6,700 | -42 | % | |||||||||||||
Income tax expense | 107 | 226 | -53 | % | 666 | 1,000 | -33 | % | |||||||||||||
Effective tax rate | 33.6 | % | 13.1 | % | 17.1 | % | 14.9 | % | |||||||||||||
NET INCOME | $ | 211 | $ | 1,500 | -86 | % | $ | 3,219 | $ | 5,700 | -44 | % | |||||||||
Earnings per common share: | |||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.99 | -86 | % | $ | 2.17 | $ | 3.76 | -42 | % | |||||||||
Diluted | $ | 0.14 | $ | 0.99 | -86 | % | $ | 2.16 | $ | 3.73 | -42 | % | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic | 1,476.7 | 1,508.0 | 1,484.9 | 1,517.6 | |||||||||||||||||
Diluted | 1,477.7 | 1,516.7 | 1,487.6 | 1,529.7 | |||||||||||||||||
Dividends declared per common share | $ | 0.400 | $ | 0.370 | $ | 1.570 | $ | 1.450 |
NIKE, Inc. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
May 31, | May 31, | % Change | ||||||
(Dollars in millions) | 2025 | 2024 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 7,464 | $ | 9,860 | -24 | % | ||
Short-term investments | 1,687 | 1,722 | -2 | % | ||||
Accounts receivable, net | 4,717 | 4,427 | 7 | % | ||||
Inventories | 7,489 | 7,519 | 0 | % | ||||
Prepaid expenses and other current assets | 2,005 | 1,854 | 8 | % | ||||
Total current assets | 23,362 | 25,382 | -8 | % | ||||
Property, plant and equipment, net | 4,828 | 5,000 | -3 | % | ||||
Operating lease right-of-use assets, net | 2,712 | 2,718 | 0 | % | ||||
Identifiable intangible assets, net | 259 | 259 | 0 | % | ||||
Goodwill | 240 | 240 | 0 | % | ||||
Deferred income taxes and other assets | 5,178 | 4,511 | 15 | % | ||||
TOTAL ASSETS | $ | 36,579 | $ | 38,110 | -4 | % | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | — | $ | 1,000 | -100 | % | ||
Notes payable | 5 | 6 | -17 | % | ||||
Accounts payable | 3,479 | 2,851 | 22 | % | ||||
Current portion of operating lease liabilities | 502 | 477 | 5 | % | ||||
Accrued liabilities | 5,911 | 5,725 | 3 | % | ||||
Income taxes payable | 669 | 534 | 25 | % | ||||
Total current liabilities | 10,566 | 10,593 | 0 | % | ||||
Long-term debt | 7,961 | 7,903 | 1 | % | ||||
Operating lease liabilities | 2,550 | 2,566 | -1 | % | ||||
Deferred income taxes and other liabilities | 2,289 | 2,618 | -13 | % | ||||
Redeemable preferred stock | — | — | — | |||||
Shareholders’ equity | 13,213 | 14,430 | -8 | % | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 36,579 | $ | 38,110 | -4 | % |
NIKE, Inc. | |||||||||||||||||||||||||||
DIVISIONAL REVENUES | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
% Change Excluding Currency Changes1 | % Change Excluding Currency Changes1 | ||||||||||||||||||||||||||
THREE MONTHS ENDED | % | TWELVE MONTHS ENDED | % | ||||||||||||||||||||||||
(Dollars in millions) | 5/31/2025 | 5/31/2024 | Change | 5/31/2025 | 5/31/2024 | Change | |||||||||||||||||||||
North America | |||||||||||||||||||||||||||
Footwear | $ | 3,104 | $ | 3,587 | -13 | % | -13 | % | $ | 12,684 | $ | 14,537 | -13 | % | -13 | % | |||||||||||
Apparel | 1,303 | 1,398 | -7 | % | -7 | % | 5,837 | 5,953 | -2 | % | -2 | % | |||||||||||||||
Equipment | 296 | 293 | 1 | % | 2 | % | 1,051 | 906 | 16 | % | 16 | % | |||||||||||||||
Total | 4,703 | 5,278 | -11 | % | -11 | % | 19,572 | 21,396 | -9 | % | -8 | % | |||||||||||||||
Europe, Middle East & Africa | |||||||||||||||||||||||||||
Footwear | 1,893 | 2,067 | -8 | % | -9 | % | 7,569 | 8,473 | -11 | % | -10 | % | |||||||||||||||
Apparel | 929 | 1,049 | -11 | % | -12 | % | 3,971 | 4,380 | -9 | % | -9 | % | |||||||||||||||
Equipment | 178 | 176 | 1 | % | 0 | % | 717 | 754 | -5 | % | -5 | % | |||||||||||||||
Total | 3,000 | 3,292 | -9 | % | -10 | % | 12,257 | 13,607 | -10 | % | -10 | % | |||||||||||||||
Greater China | |||||||||||||||||||||||||||
Footwear | 1,074 | 1,357 | -21 | % | -20 | % | 4,805 | 5,552 | -13 | % | -13 | % | |||||||||||||||
Apparel | 372 | 460 | -19 | % | -19 | % | 1,616 | 1,828 | -12 | % | -12 | % | |||||||||||||||
Equipment | 30 | 46 | -35 | % | -33 | % | 165 | 165 | 0 | % | 1 | % | |||||||||||||||
Total | 1,476 | 1,863 | -21 | % | -20 | % | 6,586 | 7,545 | -13 | % | -12 | % | |||||||||||||||
Asia Pacific & Latin America | |||||||||||||||||||||||||||
Footwear | 1,114 | 1,226 | -9 | % | -5 | % | 4,452 | 4,865 | -8 | % | -4 | % | |||||||||||||||
Apparel | 398 | 416 | -4 | % | -1 | % | 1,541 | 1,614 | -5 | % | -1 | % | |||||||||||||||
Equipment | 63 | 63 | 0 | % | 3 | % | 258 | 250 | 3 | % | 7 | % | |||||||||||||||
Total | 1,575 | 1,705 | -8 | % | -3 | % | 6,251 | 6,729 | -7 | % | -3 | % | |||||||||||||||
Global Brand Divisions2 | 9 | 11 | -18 | % | 0 | % | 48 | 45 | 7 | % | 10 | % | |||||||||||||||
TOTAL NIKE BRAND | 10,763 | 12,149 | -11 | % | -11 | % | 44,714 | 49,322 | -9 | % | -9 | % | |||||||||||||||
Converse | 357 | 480 | -26 | % | -26 | % | 1,692 | 2,082 | -19 | % | -18 | % | |||||||||||||||
Corporate3 | (23 | ) | (23 | ) | — | — | (97 | ) | (42 | ) | — | — | |||||||||||||||
TOTAL NIKE, INC. REVENUES | $ | 11,097 | $ | 12,606 | -12 | % | -11 | % | $ | 46,309 | $ | 51,362 | -10 | % | -9 | % | |||||||||||
TOTAL NIKE BRAND | |||||||||||||||||||||||||||
Footwear | $ | 7,185 | $ | 8,237 | -13 | % | -12 | % | $ | 29,510 | $ | 33,427 | -12 | % | -11 | % | |||||||||||
Apparel | 3,002 | 3,323 | -10 | % | -9 | % | 12,965 | 13,775 | -6 | % | -5 | % | |||||||||||||||
Equipment | 567 | 578 | -2 | % | -1 | % | 2,191 | 2,075 | 6 | % | 6 | % | |||||||||||||||
Global Brand Divisions2 | 9 | 11 | -18 | % | 0 | % | 48 | 45 | 7 | % | 10 | % | |||||||||||||||
TOTAL NIKE BRAND REVENUES | $ | 10,763 | $ | 12,149 | -11 | % | -11 | % | $ | 44,714 | $ | 49,322 | -9 | % | -9 | % | |||||||||||
1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. | |||||||||||||||||||||||||||
2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. | |||||||||||||||||||||||||||
3 Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program. |
NIKE, Inc. | |||||||||||||
SUPPLEMENTAL NIKE BRAND REVENUE DETAILS | |||||||||||||
(Unaudited) | |||||||||||||
% Change Excluding Currency Changes1 | |||||||||||||
TWELVE MONTHS ENDED | % | ||||||||||||
(Dollars in millions) | 5/31/2025 | 5/31/2024 | Change | ||||||||||
NIKE Brand Revenues by: | |||||||||||||
Sales to Wholesale Customers | $ | 25,883 | $ | 27,758 | -7 | % | -6 | % | |||||
Sales through NIKE Direct | 18,783 | 21,519 | -13 | % | -12 | % | |||||||
Global Brand Divisions2 | 48 | 45 | 7 | % | 10 | % | |||||||
TOTAL NIKE BRAND REVENUES | $ | 44,714 | $ | 49,322 | -9 | % | -9 | % | |||||
NIKE Brand Revenues by:3 | |||||||||||||
Men’s | $ | 23,216 | $ | 24,785 | -6 | % | -6 | % | |||||
Women’s | 9,719 | 10,366 | -6 | % | -5 | % | |||||||
Kids’ | 5,695 | 6,019 | -5 | % | -5 | % | |||||||
Jordan Brand | 7,270 | 8,701 | -16 | % | -16 | % | |||||||
Others4 | (1,234 | ) | (594 | ) | -108 | % | -106 | % | |||||
Global Brand Divisions2 | 48 | 45 | 7 | % | 10 | % | |||||||
TOTAL NIKE BRAND REVENUES | $ | 44,714 | $ | 49,322 | -9 | % | -9 | % | |||||
1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. | |||||||||||||
2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. | |||||||||||||
3 Beginning in fiscal 2025, with the continued rollout of a new Enterprise Resource Planning Platform, we have removed the non-GAAP financial measure of wholesale equivalent revenues. There is no change to our reported revenues or gross margin. Prior year amounts have been recast to conform to fiscal 2025 presentation. | |||||||||||||
4 Others include products not allocated to Men's, Women's, Kids' and Jordan Brand, as well as certain adjustments that are not allocated to products designated by consumer. |
NIKE, Inc. | |||||||||||||||||||||
EARNINGS BEFORE INTEREST AND TAXES1 | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
THREE MONTHS ENDED | % | TWELVE MONTHS ENDED | % | ||||||||||||||||||
(Dollars in millions) | 5/31/2025 | 5/31/2024 | Change | 5/31/2025 | 5/31/2024 | Change | |||||||||||||||
North America | $ | 1,045 | $ | 1,462 | -29 | % | $ | 4,735 | $ | 5,822 | -19 | % | |||||||||
Europe, Middle East & Africa | 472 | 797 | -41 | % | 2,575 | 3,388 | -24 | % | |||||||||||||
Greater China | 304 | 548 | -45 | % | 1,602 | 2,309 | -31 | % | |||||||||||||
Asia Pacific & Latin America | 319 | 479 | -33 | % | 1,527 | 1,885 | -19 | % | |||||||||||||
Global Brand Divisions2 | (1,246 | ) | (1,148 | ) | -9 | % | (4,699 | ) | (4,720 | ) | 0 | % | |||||||||
TOTAL NIKE BRAND1 | 894 | 2,138 | -58 | % | 5,740 | 8,684 | -34 | % | |||||||||||||
Converse | 27 | 94 | -71 | % | 240 | 474 | -49 | % | |||||||||||||
Corporate3 | (625 | ) | (559 | ) | -12 | % | (2,202 | ) | (2,619 | ) | 16 | % | |||||||||
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES1 | 296 | 1,673 | -82 | % | 3,778 | 6,539 | -42 | % | |||||||||||||
EBIT margin1 | 2.7 | % | 13.3 | % | 8.2 | % | 12.7 | % | |||||||||||||
Interest expense (income), net | (22 | ) | (53 | ) | — | (107 | ) | (161 | ) | — | |||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 318 | $ | 1,726 | -82 | % | $ | 3,885 | $ | 6,700 | -42 | % | |||||||||
1 Management evaluates the performance of the Company's segments and allocates resources based on earnings before interest and taxes (commonly referred to as "EBIT"), which represents Net income before Interest expense (income), net and Income tax expense. Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. EBIT margin is calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. | |||||||||||||||||||||
2 Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. | |||||||||||||||||||||
3 Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. For the twelve months ended May 31, 2024, Corporate includes the restructuring charges, recognized as a result of the Company taking steps to streamline the organization. These charges primarily reflect employee severance costs. An immaterial amount of restructuring charges was recognized for the three months ended May 31, 2024. |
NIKE, Inc. | |||||||
DILUTED EARNINGS PER SHARE | |||||||
(Unaudited) | |||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | ||||||
5/31/2024 | 5/31/2024 | ||||||
DILUTED EARNINGS PER SHARE (GAAP): | $ | 0.99 | $ | 3.73 | |||
Add: Restructuring charges | 0.03 | 0.29 | |||||
Tax effect of the restructuring charges1 | (0.01 | ) | (0.07 | ) | |||
DILUTED EARNINGS PER SHARE EXCLUDING RESTRUCTURING CHARGES (NON-GAAP):2 | $ | 1.01 | $ | 3.95 | |||
1 Tax effect was determined by applying the tax rate applicable to the specific item. | |||||||
2 Diluted earnings per share excluding the restructuring charges is a non-GAAP financial measure. The most comparable GAAP measure is Diluted earnings per share. The Company uses Diluted earnings per share excluding the restructuring charges to facilitate the evaluation of the Company’s performance. The Company believes that providing Diluted earnings per share excluding the impacts of the restructuring charges is useful to investors for comparability between periods and allows investors to evaluate the impacts of the restructuring charges separately. For the three and twelve months ended May 31, 2025, there were no material restructuring charges impacting comparability. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250626256960/en/
26 juni, 22:15
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2025 fourth quarter and full year ended May 31, 2025.
"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."
The sport offense realignment will focus on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and connect with consumers, and elevating and growing the entire marketplace.
"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, Inc. "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."
Fourth Quarter Income Statement Review
Fiscal 2025 Income Statement Review
May 31, 2025 Balance Sheet Review
Shareholder Returns
NIKE continues to have a strong track record of consistently increasing returns to shareholders, including 23 consecutive years of increasing dividend payouts.
In the fourth quarter, the Company returned approximately $0.8 billion to shareholders, including:
In fiscal 2025, the Company returned approximately $5.3 billion to shareholders, including:
As of May 31, 2025, a total of 122.6 million shares have been repurchased under the current program for a total of approximately $12.0 billion.
Conference Call
NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on June 26, 2025, to review fiscal fourth quarter and full year results. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, July 17, 2025.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.'s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.
Forward-Looking Statements
This press release contains forward-looking statements regarding our expectations of our future results and our strategy, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.
* | Non-GAAP financial measures. See additional information in the accompanying Divisional Revenues, Supplemental NIKE Brand Revenue and Diluted earnings per share tables. |
NIKE, Inc. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
THREE MONTHS ENDED | % | TWELVE MONTHS ENDED | % | ||||||||||||||||||
(In millions, except per share data) | 5/31/2025 | 5/31/2024 | Change | 5/31/2025 | 5/31/2024 | Change | |||||||||||||||
Revenues | $ | 11,097 | $ | 12,606 | -12 | % | $ | 46,309 | $ | 51,362 | -10 | % | |||||||||
Cost of sales | 6,628 | 6,972 | -5 | % | 26,519 | 28,475 | -7 | % | |||||||||||||
Gross profit | 4,469 | 5,634 | -21 | % | 19,790 | 22,887 | -14 | % | |||||||||||||
Gross margin | 40.3 | % | 44.7 | % | 42.7 | % | 44.6 | % | |||||||||||||
Demand creation expense | 1,253 | 1,091 | 15 | % | 4,689 | 4,285 | 9 | % | |||||||||||||
Operating overhead expense | 2,895 | 2,997 | -3 | % | 11,399 | 12,291 | -7 | % | |||||||||||||
Total selling and administrative expense | 4,148 | 4,088 | 1 | % | 16,088 | 16,576 | -3 | % | |||||||||||||
% of revenues | 37.4 | % | 32.4 | % | 34.7 | % | 32.3 | % | |||||||||||||
Interest expense (income), net | (22 | ) | (53 | ) | — | (107 | ) | (161 | ) | — | |||||||||||
Other (income) expense, net | 25 | (127 | ) | — | (76 | ) | (228 | ) | — | ||||||||||||
Income before income taxes | 318 | 1,726 | -82 | % | 3,885 | 6,700 | -42 | % | |||||||||||||
Income tax expense | 107 | 226 | -53 | % | 666 | 1,000 | -33 | % | |||||||||||||
Effective tax rate | 33.6 | % | 13.1 | % | 17.1 | % | 14.9 | % | |||||||||||||
NET INCOME | $ | 211 | $ | 1,500 | -86 | % | $ | 3,219 | $ | 5,700 | -44 | % | |||||||||
Earnings per common share: | |||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.99 | -86 | % | $ | 2.17 | $ | 3.76 | -42 | % | |||||||||
Diluted | $ | 0.14 | $ | 0.99 | -86 | % | $ | 2.16 | $ | 3.73 | -42 | % | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic | 1,476.7 | 1,508.0 | 1,484.9 | 1,517.6 | |||||||||||||||||
Diluted | 1,477.7 | 1,516.7 | 1,487.6 | 1,529.7 | |||||||||||||||||
Dividends declared per common share | $ | 0.400 | $ | 0.370 | $ | 1.570 | $ | 1.450 |
NIKE, Inc. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
May 31, | May 31, | % Change | ||||||
(Dollars in millions) | 2025 | 2024 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 7,464 | $ | 9,860 | -24 | % | ||
Short-term investments | 1,687 | 1,722 | -2 | % | ||||
Accounts receivable, net | 4,717 | 4,427 | 7 | % | ||||
Inventories | 7,489 | 7,519 | 0 | % | ||||
Prepaid expenses and other current assets | 2,005 | 1,854 | 8 | % | ||||
Total current assets | 23,362 | 25,382 | -8 | % | ||||
Property, plant and equipment, net | 4,828 | 5,000 | -3 | % | ||||
Operating lease right-of-use assets, net | 2,712 | 2,718 | 0 | % | ||||
Identifiable intangible assets, net | 259 | 259 | 0 | % | ||||
Goodwill | 240 | 240 | 0 | % | ||||
Deferred income taxes and other assets | 5,178 | 4,511 | 15 | % | ||||
TOTAL ASSETS | $ | 36,579 | $ | 38,110 | -4 | % | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | — | $ | 1,000 | -100 | % | ||
Notes payable | 5 | 6 | -17 | % | ||||
Accounts payable | 3,479 | 2,851 | 22 | % | ||||
Current portion of operating lease liabilities | 502 | 477 | 5 | % | ||||
Accrued liabilities | 5,911 | 5,725 | 3 | % | ||||
Income taxes payable | 669 | 534 | 25 | % | ||||
Total current liabilities | 10,566 | 10,593 | 0 | % | ||||
Long-term debt | 7,961 | 7,903 | 1 | % | ||||
Operating lease liabilities | 2,550 | 2,566 | -1 | % | ||||
Deferred income taxes and other liabilities | 2,289 | 2,618 | -13 | % | ||||
Redeemable preferred stock | — | — | — | |||||
Shareholders’ equity | 13,213 | 14,430 | -8 | % | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 36,579 | $ | 38,110 | -4 | % |
NIKE, Inc. | |||||||||||||||||||||||||||
DIVISIONAL REVENUES | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
% Change Excluding Currency Changes1 | % Change Excluding Currency Changes1 | ||||||||||||||||||||||||||
THREE MONTHS ENDED | % | TWELVE MONTHS ENDED | % | ||||||||||||||||||||||||
(Dollars in millions) | 5/31/2025 | 5/31/2024 | Change | 5/31/2025 | 5/31/2024 | Change | |||||||||||||||||||||
North America | |||||||||||||||||||||||||||
Footwear | $ | 3,104 | $ | 3,587 | -13 | % | -13 | % | $ | 12,684 | $ | 14,537 | -13 | % | -13 | % | |||||||||||
Apparel | 1,303 | 1,398 | -7 | % | -7 | % | 5,837 | 5,953 | -2 | % | -2 | % | |||||||||||||||
Equipment | 296 | 293 | 1 | % | 2 | % | 1,051 | 906 | 16 | % | 16 | % | |||||||||||||||
Total | 4,703 | 5,278 | -11 | % | -11 | % | 19,572 | 21,396 | -9 | % | -8 | % | |||||||||||||||
Europe, Middle East & Africa | |||||||||||||||||||||||||||
Footwear | 1,893 | 2,067 | -8 | % | -9 | % | 7,569 | 8,473 | -11 | % | -10 | % | |||||||||||||||
Apparel | 929 | 1,049 | -11 | % | -12 | % | 3,971 | 4,380 | -9 | % | -9 | % | |||||||||||||||
Equipment | 178 | 176 | 1 | % | 0 | % | 717 | 754 | -5 | % | -5 | % | |||||||||||||||
Total | 3,000 | 3,292 | -9 | % | -10 | % | 12,257 | 13,607 | -10 | % | -10 | % | |||||||||||||||
Greater China | |||||||||||||||||||||||||||
Footwear | 1,074 | 1,357 | -21 | % | -20 | % | 4,805 | 5,552 | -13 | % | -13 | % | |||||||||||||||
Apparel | 372 | 460 | -19 | % | -19 | % | 1,616 | 1,828 | -12 | % | -12 | % | |||||||||||||||
Equipment | 30 | 46 | -35 | % | -33 | % | 165 | 165 | 0 | % | 1 | % | |||||||||||||||
Total | 1,476 | 1,863 | -21 | % | -20 | % | 6,586 | 7,545 | -13 | % | -12 | % | |||||||||||||||
Asia Pacific & Latin America | |||||||||||||||||||||||||||
Footwear | 1,114 | 1,226 | -9 | % | -5 | % | 4,452 | 4,865 | -8 | % | -4 | % | |||||||||||||||
Apparel | 398 | 416 | -4 | % | -1 | % | 1,541 | 1,614 | -5 | % | -1 | % | |||||||||||||||
Equipment | 63 | 63 | 0 | % | 3 | % | 258 | 250 | 3 | % | 7 | % | |||||||||||||||
Total | 1,575 | 1,705 | -8 | % | -3 | % | 6,251 | 6,729 | -7 | % | -3 | % | |||||||||||||||
Global Brand Divisions2 | 9 | 11 | -18 | % | 0 | % | 48 | 45 | 7 | % | 10 | % | |||||||||||||||
TOTAL NIKE BRAND | 10,763 | 12,149 | -11 | % | -11 | % | 44,714 | 49,322 | -9 | % | -9 | % | |||||||||||||||
Converse | 357 | 480 | -26 | % | -26 | % | 1,692 | 2,082 | -19 | % | -18 | % | |||||||||||||||
Corporate3 | (23 | ) | (23 | ) | — | — | (97 | ) | (42 | ) | — | — | |||||||||||||||
TOTAL NIKE, INC. REVENUES | $ | 11,097 | $ | 12,606 | -12 | % | -11 | % | $ | 46,309 | $ | 51,362 | -10 | % | -9 | % | |||||||||||
TOTAL NIKE BRAND | |||||||||||||||||||||||||||
Footwear | $ | 7,185 | $ | 8,237 | -13 | % | -12 | % | $ | 29,510 | $ | 33,427 | -12 | % | -11 | % | |||||||||||
Apparel | 3,002 | 3,323 | -10 | % | -9 | % | 12,965 | 13,775 | -6 | % | -5 | % | |||||||||||||||
Equipment | 567 | 578 | -2 | % | -1 | % | 2,191 | 2,075 | 6 | % | 6 | % | |||||||||||||||
Global Brand Divisions2 | 9 | 11 | -18 | % | 0 | % | 48 | 45 | 7 | % | 10 | % | |||||||||||||||
TOTAL NIKE BRAND REVENUES | $ | 10,763 | $ | 12,149 | -11 | % | -11 | % | $ | 44,714 | $ | 49,322 | -9 | % | -9 | % | |||||||||||
1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. | |||||||||||||||||||||||||||
2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. | |||||||||||||||||||||||||||
3 Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program. |
NIKE, Inc. | |||||||||||||
SUPPLEMENTAL NIKE BRAND REVENUE DETAILS | |||||||||||||
(Unaudited) | |||||||||||||
% Change Excluding Currency Changes1 | |||||||||||||
TWELVE MONTHS ENDED | % | ||||||||||||
(Dollars in millions) | 5/31/2025 | 5/31/2024 | Change | ||||||||||
NIKE Brand Revenues by: | |||||||||||||
Sales to Wholesale Customers | $ | 25,883 | $ | 27,758 | -7 | % | -6 | % | |||||
Sales through NIKE Direct | 18,783 | 21,519 | -13 | % | -12 | % | |||||||
Global Brand Divisions2 | 48 | 45 | 7 | % | 10 | % | |||||||
TOTAL NIKE BRAND REVENUES | $ | 44,714 | $ | 49,322 | -9 | % | -9 | % | |||||
NIKE Brand Revenues by:3 | |||||||||||||
Men’s | $ | 23,216 | $ | 24,785 | -6 | % | -6 | % | |||||
Women’s | 9,719 | 10,366 | -6 | % | -5 | % | |||||||
Kids’ | 5,695 | 6,019 | -5 | % | -5 | % | |||||||
Jordan Brand | 7,270 | 8,701 | -16 | % | -16 | % | |||||||
Others4 | (1,234 | ) | (594 | ) | -108 | % | -106 | % | |||||
Global Brand Divisions2 | 48 | 45 | 7 | % | 10 | % | |||||||
TOTAL NIKE BRAND REVENUES | $ | 44,714 | $ | 49,322 | -9 | % | -9 | % | |||||
1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. | |||||||||||||
2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. | |||||||||||||
3 Beginning in fiscal 2025, with the continued rollout of a new Enterprise Resource Planning Platform, we have removed the non-GAAP financial measure of wholesale equivalent revenues. There is no change to our reported revenues or gross margin. Prior year amounts have been recast to conform to fiscal 2025 presentation. | |||||||||||||
4 Others include products not allocated to Men's, Women's, Kids' and Jordan Brand, as well as certain adjustments that are not allocated to products designated by consumer. |
NIKE, Inc. | |||||||||||||||||||||
EARNINGS BEFORE INTEREST AND TAXES1 | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
THREE MONTHS ENDED | % | TWELVE MONTHS ENDED | % | ||||||||||||||||||
(Dollars in millions) | 5/31/2025 | 5/31/2024 | Change | 5/31/2025 | 5/31/2024 | Change | |||||||||||||||
North America | $ | 1,045 | $ | 1,462 | -29 | % | $ | 4,735 | $ | 5,822 | -19 | % | |||||||||
Europe, Middle East & Africa | 472 | 797 | -41 | % | 2,575 | 3,388 | -24 | % | |||||||||||||
Greater China | 304 | 548 | -45 | % | 1,602 | 2,309 | -31 | % | |||||||||||||
Asia Pacific & Latin America | 319 | 479 | -33 | % | 1,527 | 1,885 | -19 | % | |||||||||||||
Global Brand Divisions2 | (1,246 | ) | (1,148 | ) | -9 | % | (4,699 | ) | (4,720 | ) | 0 | % | |||||||||
TOTAL NIKE BRAND1 | 894 | 2,138 | -58 | % | 5,740 | 8,684 | -34 | % | |||||||||||||
Converse | 27 | 94 | -71 | % | 240 | 474 | -49 | % | |||||||||||||
Corporate3 | (625 | ) | (559 | ) | -12 | % | (2,202 | ) | (2,619 | ) | 16 | % | |||||||||
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES1 | 296 | 1,673 | -82 | % | 3,778 | 6,539 | -42 | % | |||||||||||||
EBIT margin1 | 2.7 | % | 13.3 | % | 8.2 | % | 12.7 | % | |||||||||||||
Interest expense (income), net | (22 | ) | (53 | ) | — | (107 | ) | (161 | ) | — | |||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 318 | $ | 1,726 | -82 | % | $ | 3,885 | $ | 6,700 | -42 | % | |||||||||
1 Management evaluates the performance of the Company's segments and allocates resources based on earnings before interest and taxes (commonly referred to as "EBIT"), which represents Net income before Interest expense (income), net and Income tax expense. Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. EBIT margin is calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. | |||||||||||||||||||||
2 Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. | |||||||||||||||||||||
3 Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. For the twelve months ended May 31, 2024, Corporate includes the restructuring charges, recognized as a result of the Company taking steps to streamline the organization. These charges primarily reflect employee severance costs. An immaterial amount of restructuring charges was recognized for the three months ended May 31, 2024. |
NIKE, Inc. | |||||||
DILUTED EARNINGS PER SHARE | |||||||
(Unaudited) | |||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | ||||||
5/31/2024 | 5/31/2024 | ||||||
DILUTED EARNINGS PER SHARE (GAAP): | $ | 0.99 | $ | 3.73 | |||
Add: Restructuring charges | 0.03 | 0.29 | |||||
Tax effect of the restructuring charges1 | (0.01 | ) | (0.07 | ) | |||
DILUTED EARNINGS PER SHARE EXCLUDING RESTRUCTURING CHARGES (NON-GAAP):2 | $ | 1.01 | $ | 3.95 | |||
1 Tax effect was determined by applying the tax rate applicable to the specific item. | |||||||
2 Diluted earnings per share excluding the restructuring charges is a non-GAAP financial measure. The most comparable GAAP measure is Diluted earnings per share. The Company uses Diluted earnings per share excluding the restructuring charges to facilitate the evaluation of the Company’s performance. The Company believes that providing Diluted earnings per share excluding the impacts of the restructuring charges is useful to investors for comparability between periods and allows investors to evaluate the impacts of the restructuring charges separately. For the three and twelve months ended May 31, 2025, there were no material restructuring charges impacting comparability. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250626256960/en/
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