Companies /Consumer Cyclical

Nike Inc - Class B

NYSE: NKE Footwear & Accessories
$39.60
â–² $1.16 (+3.02%) today
Markets closed · 4:20pm ET

Q3 2025 Earnings

Reported Mar 20, 2025, 4:16pm ET · SEC source
$0.54
Beat +94.88%
EPS · est. $0.28
$11.3B
Beat +2.13%
Revenue · est. $11.0B
−10.5%
Trailing market
NKE vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−8%−4%0Mar 20Mar 21report 4:16pm ETearnings−0.2%−8.4%
−12%−8%−4%0Mar 20Mar 21earnings−0.2%−8.4%
NKE −8.4%S&P 500 −0.2%
−12%−8%−4%0Mar 20Mar 21report 4:16pm ETearnings+0.4%−8.4%
−12%−8%−4%0Mar 20Mar 21earnings+0.4%−8.4%
NKE −8.4%NASDAQ +0.4%
−15%−10%−5%0Mar 19Mar 28report 4:16pm ETearnings−2.1%−13.8%
−15%−10%−5%0Mar 19Mar 28earnings−2.1%−13.8%
NKE −13.8%S&P 500 −2.1%
−15%−10%−5%0Mar 19Mar 28report 4:16pm ETearnings−2.6%−13.8%
−15%−10%−5%0Mar 19Mar 28earnings−2.6%−13.8%
NKE −13.8%NASDAQ −2.6%
−5.46%
Day of report
−0.81%
Next session
−6.84%
One week
−15.53%
30 days

S&P 500 over the same 30 days: −5.06%.

Did NKE Beat Earnings? Q3 2025 Results

Nike delivered a sharper-than-expected profit recovery in fiscal Q3 2025, even as the broader turnaround story remains a work in progress. The sportswear giant posted diluted EPS of $0.54, well ahead of the $0.28 consensus estimate, a 92.86% beat driven in meaningful part by a one-time non-cash deferred tax benefit that pulled the effective tax rate down to just 5.9% from 16.5% a year ago. Revenue came in at $11.27 billion, down 9% on a reported basis, with weakness spanning all geographies and channels; Greater China was the hardest-hit region, with revenues tumbling 17% to $1.73 billion and EBIT plunging 42%. Gross margin contracted 330 basis points to 41.5%, pressured by higher discounts, elevated inventory obsolescence reserves, and unfavorable channel mix. Analysts have trimmed price targets in response to the persistent top-line softness, reflecting skepticism about the near-term pace of recovery. CEO Elliott Hill reaffirmed the second-half outlook, pointing to renewed investment in sport storytelling and performance product innovation as the foundation for rebuilding brand momentum.

Key Takeaways
  • Revenue declines across all geographies and channels
  • Gross margin compression of 330 basis points due to higher discounts, inventory obsolescence reserves, higher product costs, and channel mix changes
  • NIKE Brand Digital revenue declined 15%
  • One-time non-cash deferred tax benefit from finalized US tax regulations on foreign currency gains and losses reduced effective tax rate to 5.9%
  • Operating overhead decreased 13% partly due to absence of prior-year restructuring charges of $340 million
  • Demand creation expense increased 8% reflecting higher brand marketing investment

“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.”

Nike CEO, on the earnings call

Forward Guidance & Outlook

Nike's outlook for the second half of fiscal 2025, driven by 'Win Now' actions, remains consistent with prior quarter guidance. CFO Matthew Friend acknowledged the operating environment is dynamic but emphasized that the most important focus for Nike is serving athletes with new product innovation and re-igniting brand momentum through sport.

NKE YoY Financials

Revenue$11.3B
Gross Profit$4.7B
Operating Income$826.0M
Net Income$794.0M

NKE Revenue by Segment

NIKE Brand$10.9B−9.0%
NIKE Brand Footwear$7.2B−12.0%
NIKE Wholesale$6.2B−7.0%
NIKE Direct$4.7B−12.0%
NIKE Brand Apparel$3.2B−3.0%
NIKE Brand Equipment$477.0M−2.0%
Converse$405.0M−18.0%

NKE Revenue by Geography

North America$4.9B−4.0%
EMEA$2.8B−10.0%
Asia Pacific$1.5B−11.0%
Greater China$1.7B−17.0%

Figures from SEC filings and company reports. Not investment advice.