NIKE, Inc. (NYSE:NKE) reported its financial results for the fourth quarter and full year ending May 31, 2025. The company, based near Beaverton, Oregon, is a global leader in athletic footwear, apparel, and equipment. For the fiscal year 2025, total revenues for NIKE, Inc. were $46.3 billion, reflecting a decline of 10% compared to the previous year. On a currency-neutral basis, revenues were down 9%.

In the fourth quarter specifically, revenues came in at $11.1 billion, down 12% on a reported basis and down 11% when adjusted for currency fluctuations. Revenues for the NIKE Brand were recorded at $10.8 billion, also representing a decline of 11%. NIKE Direct, which includes retail and digital sales, generated $4.4 billion in the fourth quarter, a decrease of 14%. Wholesale revenues declined to $6.4 billion, down 9%.

Gross margins experienced a significant contraction, decreasing by 440 basis points to 40.3%. This decline was attributed to higher discounts, supply chain cost deleverage, and changes in channel mix. The company’s selling and administrative expenses increased 1% to $4.1 billion, which included a 15% rise in demand creation expenses, totaling $1.3 billion.

For the full fiscal year, diluted earnings per share amounted to $2.16, a decrease of 42% from the previous year. Net income for the year fell to $3.2 billion, down 44%, reflecting considerable impacts from ongoing operational adjustments amid declining revenues.

Looking ahead, NIKE indicated expectations of moderate headwinds affecting revenue and gross margins continuing through the first half of fiscal 2026. The company anticipates first-quarter revenues to be down in the mid-single digits, and gross margins are projected to decline by approximately 350 to 425 basis points, with a significant impact attributable to newly issued tariffs.

In terms of inventory management, NIKE ended the fiscal year with $7.5 billion in inventory, flat versus the prior year. The company has noted improvements in clearing aged inventory, with expectations of a cleaner marketplace by mid-fiscal 2026.

Total shareholder returns for fiscal year 2025 were approximately $5.3 billion, which included $2.3 billion in dividends and $3.0 billion in share repurchases.