Nike reported fiscal 2025 second-quarter results for the period ending November 30, 2024, with revenues of $12.4 billion, an 8 per cent year-over-year decline (9 per cent currency-neutral).
Nike Direct revenues fell 13 per cent to $5.0 billion in the second quarter, primarily driven by a significant 21 per cent decline in digital sales and a 2 per cent drop in store sales. Wholesale revenues also experienced a decrease, falling 3 per cent to $6.9 billion.
Gross margin contracted by 100 basis points to 43.6 per cent, largely due to higher discounts and changes in sales channel mix. The company's net income declined 26 per cent to $1.2 billion, with diluted earnings per share dropping 24 per cent to $0.78. Converse revenues were not spared, falling 17 per cent to $429 million, reflecting declines across all markets.
CEO Elliott Hill emphasized Nike’s renewed focus on sport to reignite brand momentum. “We’re taking immediate action to reposition our business and deliver long-term shareholder value,” he stated.
Inventories remained flat at $8.0 billion, while cash and equivalents stood at $9.8 billion, reflecting operational cash generation offset by share repurchases and dividends.
Nike returned $1.6 billion to shareholders, including $557 million in dividends (up 7 per cent) and $1.1 billion in share buybacks. Since 2022, NIKE has repurchased 112.8 million shares worth $11.3 billion under its $18 billion program.
Despite headwinds, CFO Matthew Friend expressed confidence in the company’s strategic repositioning efforts.
