Nike, Inc reported a 9 per cent drop in revenue for the third quarter of fiscal 2025, ending February 28, reflecting weaker demand across all regions. Total revenue stood at $11.3 billion, with Nike Brand revenue down 9 per cent to $10.9 billion. Nike Direct sales fell 12 per cent to $4.7 billion, impacted by a 15 per cent drop in digital sales and a 2 per cent decline in owned stores. Wholesale revenue slipped 7 per cent to $6.2 billion, while Converse revenue dropped 18 per cent to $405 million.

Gross margin declined by 330 basis points to 41.5 per cent due to increased discounting, higher product costs, and inventory adjustments. Selling and administrative expenses fell 8 per cent to $3.9 billion, driven by lower wage-related costs and restructuring savings. Demand creation expenses, however, rose 8 per cent to $1.1 billion due to higher brand marketing spending.

Nike’s net income fell 32 per cent to $0.8 billion, with diluted earnings per share declining 30 per cent to $0.54. The effective tax rate dropped to 5.9 per cent from 16.5 per cent last year, aided by a one-time tax benefit.

Despite the challenges, Nike maintained shareholder returns, distributing $1.1 billion in Q3, including $594 million in dividends up 6 per cent from the prior year and $499 million in share repurchases. Since launching its $18 billion buyback program in June 2022, the company has repurchased 119.3 million shares worth $11.8 billion.

Nike CEO Elliott Hill emphasized confidence in the company’s ‘Win Now’ strategy, which focuses on athlete-driven storytelling and innovation. CFO Matthew Friend noted that the company’s outlook for the second half of fiscal 2025 remains unchanged despite a dynamic operating environment.

Nike’s inventory stood at $7.5 billion, down 2 per cent from the previous year, while cash and equivalents totaled $10.4 billion.