BEAVERTON, Ore. – Shares of Nike Inc. dropped 1 percent to $62 on Thursday afternoon as the company released its fourth-quarter 2025 results. Despite meeting Wall Street expectations, the figures did not reach the company’s desired outcomes.
Immediate Impact
Nike’s net income plummeted 86 percent to $211 million, a significant decline from $1.5 billion in the same period last year. Diluted earnings per share also saw a sharp decrease, falling to 14 cents from 99 cents. The company’s sales totaled $11.1 billion, marking a 12 percent drop from $12.6 billion.
Key Details Emerge
Despite the downturn, Nike’s fourth-quarter results slightly exceeded Wall Street’s expectations. Analysts had predicted earnings per share of 13 cents, according to LSEG.
By the Numbers
- Nike brand’s fourth-quarter revenues: $10.8 billion, down 11 percent
- Nike Direct revenues: $4.4 billion, down 14 percent
- Wholesale channel revenues: $6.4 billion, down 9 percent
- Footwear revenues: $7.2 billion, down 13 percent
- Apparel sales: $3 billion, down 10 percent
Industry Response
Elliott Hill, Nike’s president and CEO, acknowledged the results were in line with expectations but not satisfactory. “Moving forward, we expect our business to improve as a result of the progress we’re making through our Win Now actions,” Hill stated.
Matthew Friend, Nike’s CFO, noted the fourth quarter reflected the largest financial impact from their strategic actions. “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,” Friend added.
What Comes Next
Looking ahead, Nike refrained from providing guidance for fiscal 2026. However, the company plans to focus on a “sport offense realignment” next year, aiming to drive distinction within key sports and elevate its market presence.
“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,” Hill explained. “This will accelerate our Win Now actions to reposition our business for future growth.”
Background Context
For the full fiscal year, Nike reported revenues of $46.3 billion, a 10 percent decrease. Net income dropped 44 percent to $3.2 billion. Nike brand revenues for the year were $44.7 billion, down 9 percent, with declines across all geographies.
Nike Direct revenues fell to $18.8 billion, a 13 percent decline, due to a 20 percent decrease in Nike Brand Digital, while Nike-owned stores remained flat.
Expert Analysis
Industry analysts suggest that Nike’s strategic focus on digital transformation and global market realignment could position the company for recovery. The upcoming fiscal year will be pivotal as Nike implements its sport offense strategy to regain growth momentum.
The announcement comes as Nike continues to face challenges in the global retail environment, with shifts in consumer behavior and increased competition. However, the company’s commitment to innovation and market leadership remains steadfast.
