Part One

NIKE, Inc., based near Beaverton, Oregon, is the world’s leading designer, marketer, and distributor of athletic footwear, apparel, equipment, and accessories. The company operates globally, targeting both the performance and sportswear markets across multiple demographics.

In the third quarter of fiscal 2025, NIKE is in a declining condition. The company reported revenues of $11.3 billion, down 9% from $12.4 billion in the same period last year, marking a decline of 7% on a currency-neutral basis. NIKE Direct revenues fell by 12% to $4.7 billion, while wholesale revenues decreased 7% to $6.2 billion. The gross margin suffered a decline of 330 basis points, down to 41.5%, influenced by higher markdowns and inventory obsolescence.

Operating expenses were down, with selling, general and administrative expenses reducing by 8% to $3.9 billion. Demand creation expenses increased 8% to $1.1 billion, primarily due to higher investments in brand marketing. Net income decreased by 32% to $794 million, leading to diluted earnings per share of $0.54, a decline of 30%.

In terms of inventory, total inventory stood at $7.5 billion, down 2% compared to the prior year, despite an increase in units. The company’s effective tax rate for the quarter was reported at 5.9%, a decrease from 16.5% the previous year due to a one-time tax benefit.

For the fourth quarter, NIKE expects revenues to decline in the mid-teens range, with gross margins anticipated to fall approximately 400 to 500 basis points. The company expects SG&A expenses to rise low to mid-single digits.

Part Two

NIKE, Inc. reported its fiscal 2025 third-quarter results, revealing a decline across key financial metrics. The company achieved revenues of $11.3 billion, down 9% from $12.4 billion year-over-year and a 7% drop on a currency-neutral basis.

The decline in revenues was reflected in its direct and wholesale sales. NIKE Direct revenues fell by 12% to $4.7 billion, with NIKE Digital down 15% and owned stores down 2%. Wholesale revenues decreased by 7% to $6.2 billion, primarily impacted by lower sales in Greater China.

Gross margins decreased by 330 basis points to 41.5%, affected by higher markdowns and inventory obsolescence. Selling, general and administrative expenses totaled $3.9 billion, down 8%. Demand creation expenses rose 8% to $1.1 billion, as brand marketing investments increased.

Net income dropped 32% to $794 million, with diluted earnings per share reported at $0.54, down from $0.77. The company’s effective tax rate was recorded at 5.9%, compared to 16.5% for the same quarter last year, due to a one-time tax benefit.

NIKE’s inventories amounted to $7.5 billion, down 2% compared to the prior year. The company anticipates fourth quarter revenues to decline in the mid-teens range, with gross margins expected to decrease by approximately 400 to 500 basis points. The SG&A expenses are projected to rise low to mid-single digits.

Part Three

NIKE, Inc. reported a decline in key financial metrics for the third quarter of fiscal 2025. Revenues totaled $11.3 billion, which represents a decrease of 9% from $12.4 billion year-over-year and a 7% decline on a currency-neutral basis.

The decrease was evident in both direct and wholesale sales. NIKE Direct revenues were down 12% at $4.7 billion, with NIKE Digital seeing a 15% decline and owned stores declining 2%. Wholesale revenues also fell by 7% to $6.2 billion, largely due to decreased sales in Greater China.

The gross margin for the quarter was 41.5%, which reflects a drop of 330 basis points. This decline is attributed to higher markdowns and inventory obsolescence. Total selling, general, and administrative expenses decreased by 8% to $3.9 billion. Demand creation expenses increased by 8% to $1.1 billion, led by elevated brand marketing investments.

Net income for the quarter was reported at $794 million, a 32% decrease from the same period last year. Diluted earnings per share stood at $0.54, down 30% from $0.77. The effective tax rate for the quarter was 5.9%, a notable decline from 16.5% in the prior year, largely due to a one-time tax benefit.

NIKE’s total inventory reached $7.5 billion, reflecting a 2% decrease compared to the year before. For the fourth quarter, the company expects revenues to decline in the mid-teens range, anticipating a gross margin drop of approximately 400 to 500 basis points. SG&A expenses are projected to rise low to mid-single digits.