Revenue Performance - NIKE, Inc. revenues for Q2 fiscal 2025 were $12.4 billion, down 8% from $13.4 billion in Q2 fiscal 2024[79] - NIKE Direct revenues for Q2 fiscal 2025 were $5.0 billion, down 13% from $5.7 billion in Q2 fiscal 2024, representing 42% of total NIKE Brand revenues[79] - NIKE Brand wholesale revenues for Q2 fiscal 2025 were $6.9 billion, down 3% from $7.1 billion in Q2 fiscal 2024[79] - NIKE Brand footwear revenues for Q2 fiscal 2025 were $7.7 billion, down 11% from $8.6 billion in Q2 fiscal 2024[84] - NIKE Brand apparel revenues for Q2 fiscal 2025 were $3.7 billion, down 1% from $3.8 billion in Q2 fiscal 2024[84] - NIKE Brand equipment revenues for Q2 fiscal 2025 were $544 million, up 14% from $479 million in Q2 fiscal 2024[84] - Converse revenues for Q2 fiscal 2025 were $429 million, down 17% from $519 million in Q2 fiscal 2024[84] - NIKE, Inc. revenues for Q2 fiscal 2025 were $12.4 billion, a 9% decrease on a currency-neutral basis compared to $13.4 billion in Q2 fiscal 2024, driven by declines in North America, EMEA, Greater China, and Converse[88] - NIKE Brand footwear revenues decreased 12% on a currency-neutral basis in Q2 fiscal 2025, with unit sales down 7% and lower ASP reducing revenues by 5 percentage points[88] - NIKE Direct revenues for Q2 fiscal 2025 were $5.0 billion, a 14% decrease on a currency-neutral basis, with NIKE Brand Digital sales declining 21% and comparable store sales down 2%[88] - North America revenues for Q2 fiscal 2025 were $5.179 billion, an 8% decrease on a currency-neutral basis compared to $5.625 billion in Q2 fiscal 2024[104] - Converse revenues for Q2 fiscal 2025 were $429 million, a 17% decrease on a currency-neutral basis compared to $519 million in Q2 fiscal 2024[104] - Footwear revenues decreased by 14% to $3.236 billion in Q2 FY2025, with a 14% decline to $6.448 billion for the first six months of FY2025[107] - Apparel revenues increased by 1% to $1.693 billion in Q2 FY2025, with a 4% decline to $3.024 billion for the first six months of FY2025[107] - NIKE Direct revenues decreased by 15% to $2.313 billion in Q2 FY2025, with a 13% decline to $4.664 billion for the first six months of FY2025[107] - EMEA revenues decreased by 10% on a currency-neutral basis, with NIKE Direct revenues down 20% due to a 32% decline in digital sales[115] - Greater China revenues decreased by 8% to $1.711 billion in Q2 FY2025, with a 6% decline to $3.377 billion for the first six months of FY2025[117] - EMEA revenues decreased 11% on a currency-neutral basis, with NIKE Direct revenues down 17% due to a 29% decline in digital sales, partially offset by 2% comparable store sales growth[119] - Greater China revenues decreased 11% on a currency-neutral basis, with NIKE Direct revenues down 7% due to an 8% decline in comparable store sales and a 4% decline in digital sales[120] - APLA revenues decreased 2% on a currency-neutral basis, with NIKE Direct revenues down 4% due to an 8% decline in digital sales[125] - Converse revenues decreased 18% on a currency-neutral basis, with unit sales down 12% and ASP down 6% due to higher discounts[130] Gross Margin and Profitability - Gross margin for Q2 fiscal 2025 decreased by 100 basis points to 43.6%, primarily due to higher discounts and changes in channel mix[79] - Gross margin for Q2 fiscal 2025 was 43.6%, a 100 basis points decrease compared to 44.6% in Q2 fiscal 2024, primarily due to lower NIKE Brand ASP and higher other costs[88][95] - Gross margin in North America was flat, impacted by lower ASP due to product mix, channel mix changes, and higher discounts[111] - Gross margin expanded by 140 basis points in EMEA, primarily due to lower product costs and reduced warehousing and logistics expenses[119] - Gross margin contracted by approximately 200 basis points due to lower ASP, higher logistics costs, and unfavorable foreign currency exchange rates[134] Expenses and Costs - Total selling and administrative expenses for Q2 fiscal 2025 were $4.005 billion, a 3% decrease compared to $4.146 billion in Q2 fiscal 2024, with operating overhead expenses down 5%[90][93] - Selling and administrative expenses decreased by 2% primarily due to lower operating overhead expenses[134] - Corporate loss before interest and taxes decreased 6% to $565 million, primarily due to unallocated general and administrative expenses[131] - Global Brand Divisions' loss before interest and taxes decreased 3% due to lower operating overhead expense, partially offset by higher demand creation expense[126] - Corporate's loss before interest and taxes increased by $30 million in Q2 FY2025 compared to Q2 FY2024[134] - Corporate's loss before interest and taxes decreased by $79 million in the first six months of FY2025 compared to the same period in FY2024[134] Regional Performance - North America EBIT decreased by 10% to $1.371 billion in Q2 FY2025, with a 13% decline to $2.587 billion for the first six months of FY2025[106] - Europe, Middle East & Africa EBIT decreased by 10% to $831 million in Q2 FY2025, with a 13% decline to $1.623 billion for the first six months of FY2025[106] - Greater China EBIT decreased by 27% to $375 million in Q2 FY2025, with a 16% decline to $877 million for the first six months of FY2025[106] - Total NIKE Brand EBIT decreased by 18% to $1.904 billion in Q2 FY2025, with a 19% decline to $3.589 billion for the first six months of FY2025[106] - Footwear revenues decreased 12% on a currency-neutral basis in EMEA, with unit sales down 12% and ASP per pair flat[119] - Apparel revenues decreased 10% on a currency-neutral basis in EMEA, with unit sales down 11% and higher ASP contributing 1 percentage point of growth[119] - Greater China footwear revenues decreased 14% on a currency-neutral basis, with unit sales down 9% and lower ASP reducing revenues by 5 percentage points[120] Cash Flow and Shareholder Returns - NIKE returned approximately $1.6 billion to shareholders in Q2 fiscal 2025 through share repurchases and dividends[79] - Cash provided by operations was $1,443 million in the first six months of FY2025, down from $2,751 million in the same period of FY2024[144] - Cash used in investing activities was $240 million in the first six months of FY2025, compared to an inflow of $875 million in the same period of FY2024[145] - Cash used in financing activities was $3,070 million in the first six months of FY2025, slightly lower than $3,151 million in the same period of FY2024[146] - The company repurchased 27.9 million shares for $2,254 million in the first six months of FY2025 under its $18 billion share repurchase program[147] - As of November 30, 2024, the company had $9.8 billion in cash and equivalents and short-term investments[152] - Obligations under endorsement contracts totaled $15.9 billion as of November 30, 2024, with $1.9 billion payable within 12 months[154] Inventory and Other Financial Metrics - Inventories as of November 30, 2024, were $8.0 billion, a 6% increase compared to May 31, 2024[79] - Other (income) expense, net decreased to $8 million in Q2 fiscal 2025 from $75 million in Q2 fiscal 2024, primarily due to unfavorable foreign currency conversion gains and losses[96][97] - Effective tax rate for the first six months of fiscal 2025 was 18.7%, compared to 15.2% in the same period of fiscal 2024, due to one-time benefits in fiscal 2024[100][101]

NIKE Inc. (NKE) continues to face challenges related to its operations, highlighted by sluggish lifestyle segment sales, issues in Greater China and reduced digital sales. These factors are affecting the company’s share price performance, which has slumped 29.6% in the past year.Shares of the Beaverton, OR-based company underperformed its industry peers, which collectively declined 24% in the past year. The NKE stock compared unfavorably with the broader Consumer Discretionary sector and the S&P 500 Index’s ...

Nike (NKE 0.04%) is the leader in the global apparel and shoe market, with a 16.4% share in sportswear, according to Euromonitor. It's a household name that most investors have not only heard of but are likely customers of as well.However, the shares have been wildly disappointing due to the company's ongoing challenges. As of this writing (Dec. 23, 2024), they trade 57% off their peak price, which was established just over three years ago in November 2021. Nike might look interesting as a buy-the-dip candi ...

Bill Ackman is one of the must-watch investors of the 21st century. Ackman was an activist short seller for most of his career, but in recent years, he has transitioned to more of a long-only investor. Over the past five years, Ackman's main fund Pershing Square Holdings has returned 28% annually from 2019 to 2023.However, the fund has trailed the broader benchmark S&P 500 index since its inception about a decade ago, according to Barron's. Ackman and Pershing maintain a small portfolio with less than a doz ...

With a yield of over 2%, Nike stock has become a legitimate passive income source for patient investors.Nike (NKE 0.04%) reported its fiscal 2025's second-quarter results on Dec. 19, beating top- and bottom-line estimates (although expectations were very low). However, the stock fell slightly on Dec. 20 despite a 1.1% gain in the S&P 500 as investors digested Nike's guidance and the timeline of its recovery.The company has increased its dividend for 23 consecutive years and currently yields 2.1%, making it ...

Nike, the world's largest sportswear brand, is on a mission to regain its stride after a challenging year.Analysts say a yearslong series of strategic errors led to the company's worst trading day ever over the summer, during which shares fell 20%, wiping $28 billion off of Nike's market cap.Last week, the company posted its first earnings report under new CEO Elliott Hill, which analysts say could mark the beginning of a long turnaround for the brand."When Nike puts innovation behind their products, they c ...

Nike (NKE -0.23%) shares were running on a treadmill after the athletic apparel company reported its fiscal second-quarter results last week. While the company was able to top estimates, its new CEO indicated that a turnaround is going to take some time. The stock is trading down nearly 30% year to date as of this writing.Let's take a closer look at Nike's fiscal Q2 results, its new CEO's turnaround plans, and when (or if) the stock may be about to rebound.Declining sales and turnaround planWhile Nike was e ...

Nike (NKE -0.23%) has been through the wringer lately.The world's largest sportswear brand is suffering through one of the most challenging periods in its history. Revenue has now fallen for three quarters in a row and those declines are expected to continue. After a post-pandemic spike in 2022, revenue growth decelerated for seven quarters in a row, bottoming out with a 10% decline this summer. Along the way, Nike stock is down 57% from its peak in 2021, and it's ceded significant market share and mindshar ...

Every earnings season has its share of overreactions, as stocks can overshoot on the upside and the downside. The fear of missing out (FOMO) can trigger panic and a leapfrog mentality where emotions drive extensive overreactions. Investors can develop FOMO when they believe a stock is going higher, and they don't want to miss the ride. However, investors can also develop FOMO when they worry their stock is going much lower and rush for the exits to try and limit losses. Many times, these types of overreacti ...

Brian Gilmartin, is a portfolio manager at Trinity Asset Management, a firm he founded in May, 1995, catering to individual investors and institutions that werent getting the attention and service deserved, from larger firms. Brian started in the business as a fixed-income / credit analyst, with a Chicago broker-dealer, and then worked at Stein Roe & Farnham in Chicago, from 1992 - 1995, before striking out on his own and managing equity and balanced accounts for clients. Brian has a BSBA (Finance) from Xav ...