Nike

NKE Q2 2025 Earnings

Reported Dec 19, 2024 at 4:15 PM ET · SEC Source

Q2 25 EPS

$0.78

BEAT +23.30%

Est. $0.63

Q2 25 Revenue

$12.35B

BEAT +2.01%

Est. $12.11B

vs S&P Since Q2 25

-67.3%

TRAILING MARKET

NKE -43.3% vs S&P +24.0%

Market Reaction

Did NKE Beat Earnings? Q2 2025 Results

Nike delivered a better-than-expected bottom line in fiscal Q2 2025, but the headline beat did little to obscure the depth of the turnaround challenge facing new CEO Elliott Hill. The company posted diluted EPS of $0.78, clearing the $0.63 consensus … Read more Nike delivered a better-than-expected bottom line in fiscal Q2 2025, but the headline beat did little to obscure the depth of the turnaround challenge facing new CEO Elliott Hill. The company posted diluted EPS of $0.78, clearing the $0.63 consensus estimate by 23.81%, yet that figure still represented a 24% decline from a year ago as net income tumbled 26% to $1.16 billion. Revenue of $12.35 billion fell 7.7% year over year, with broad weakness across every geography and channel; NIKE Direct was the sharpest drag, sliding 13% to $5.00 billion on the back of a steep 21% drop in digital sales. Gross margin contracted 100 basis points to 43.6%, squeezed by heavier discounting and unfavorable channel mix. Analysts have noted that the results, while above expectations, remain poor by Nike's historical standards and that increased discounting clouds the near-term profit outlook, suggesting the brand's repositioning under Hill, who is roughly 60 days into his tenure, will take time to bear fruit.

Key Takeaways

  • Higher discounts and unfavorable channel mix pressured gross margin by 100 basis points
  • NIKE Brand Digital revenues declined 21%, driving NIKE Direct weakness
  • Lower product input costs and warehousing/logistics costs partially offset margin pressure
  • Operating overhead decreased 5% due to lower wage-related and administrative costs
  • Equipment category grew 14%, a bright spot amid broad-based declines
  • Currency headwinds negatively impacted reported results by approximately 1 percentage point
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NKE YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

NKE Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q4 26
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NKE Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q4 26

“After an energizing 60 days of being back with my NIKE teammates, our clear priority is to return sport to the center of everything we do. We're taking immediate action to reposition our business, so we can get back to driving long-term shareholder value. Our team is ready to go, and I'm confident you will see more moments of NIKE being NIKE again.”

— Elliott Hill, Q2 2025 Earnings Press Release