NIKE, Inc. Brands Report Fiscal 2025 Third Quarter sales dip

• Third quarter revenues were $11.3 billion, down 9 percent on a reported basis compared to the prior year.
• NIKE Direct revenues were $4.7 billion, down 12 percent on a reported basis.
• Wholesale revenues were $6.2 billion, down 7 percent on a reported basis
• Gross margin decreased 330 basis points to 41.5 percent

“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,” said Elliott Hill, President and CEO, NIKE, Inc. “What’s encouraging is NIKE made an impact this quarter leading with sport – through athlete storytelling, performance products and big sport moments.” “Our outlook for the second half of fiscal 2025 driven by our ‘Win Now’ actions remains consistent with what we communicated last quarter,” said Matthew Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. “The operating environment is dynamic, but what matters most for NIKE is serving athletes with new product innovation and re-igniting brand momentum through sport.”

Third Quarter Income Statement Review

Revenues for NIKE, Inc. were $11.3 billion, down 9 percent on a reported basis          compared to the prior year.

NIKE Brand revenues were $10.9 billion, down 9 percent on a reported basis driven by declines across all regions.

NIKE Direct revenues were $4.7 billion, down 12 percent on a reported basis primarily due to a 15 percent decrease in NIKE Brand Digital and a 2 percent decrease in NIKE-owned stores.

Wholesale revenues were $6.2 billion, down 7 percent on a reported basis

Revenues for Converse were $405 million, down 18 percent on a reported basis due to declines across all territories.

Gross margin decreased 330 basis points to 41.5 percent, primarily due to higher        discounts, higher inventory obsolescence reserves, higher product costs and              changes in channel mix, partially offset by restructuring charges in the prior year.

Selling and administrative expense decreased 8 percent to $3.9 billion.

Demand creation expense was $1.1 billion, up 8 percent, primarily due to an increase in brand marketing expense.

Operating overhead expense decreased 13 percent to $2.8 billion, primarily due to the restructuring charges of $340 million in the prior year and lower wage-related expenses.

Net income was $0.8 billion, down 32 percent

February 28, 2025 Balance Sheet Review

Inventories for NIKE, Inc. were $7.5 billion, down 2 percent compared to the prior year, reflecting product mix shifts, partially offset by an increase in units.

Cash and equivalents and short-term investments were $10.4 billion, down approximately $0.2 billion from last year, as cash generated by operations was more than offset by share repurchases, cash dividends and capital expenditures.