NIKE(NKE) - 2025 Q2 - Quarterly Results

Revenue Performance - Second quarter revenues were $12.4 billion, down 8 percent on a reported basis compared to the prior year and down 9 percent on a currency-neutral basis[2]. - Total revenues for Nike, Inc. decreased by 8% to $12,354 million for the three months ended November 30, 2024, compared to $13,388 million for the same period in 2023[18]. - Total revenues for the six months ended November 30, 2024, were $23,943 million, a 9% decrease from $26,327 million in the same period of 2023[18]. Segment Performance - NIKE Direct revenues were $5.0 billion, down 13 percent on a reported basis, primarily due to a 21 percent decrease in NIKE Brand Digital[3]. - Wholesale revenues were $6.9 billion, down 3 percent on a reported basis[3]. - Footwear sales in North America dropped by 14% to $3,236 million for the three months ended November 30, 2024, down from $3,757 million in the prior year[18]. - Total Nike Brand revenues decreased by 7% to $11,950 million for the three months ended November 30, 2024, compared to $12,872 million in the same period in 2023[18]. - Converse revenues decreased by 17% to $429 million for the three months ended November 30, 2024, compared to $519 million in the same period last year[18]. - Equipment sales increased by 14% to $544 million for the three months ended November 30, 2024, compared to $479 million in the same period last year[18]. Profitability Metrics - Net income was $1.2 billion, down 26 percent, and diluted earnings per share was $0.78, a decrease of 24 percent[3]. - Earnings before interest and taxes (EBIT) for Nike, Inc. fell by 27% to $1,392 million for the three months ended November 30, 2024, compared to $1,900 million in the same period last year[20]. - Greater China experienced a 27% decline in EBIT, dropping to $375 million for the three months ended November 30, 2024, from $514 million in the previous year[20]. - North America EBIT decreased by 10% to $1,371 million for the three months ended November 30, 2024, compared to $1,526 million in the same period last year[20]. - The EBIT margin for Nike, Inc. was 11.3% for the three months ended November 30, 2024, down from 14.2% in the prior year[20]. Cost and Margin Analysis - Gross margin decreased 100 basis points to 43.6 percent, primarily due to higher discounts and changes in channel mix[3]. - The effective tax rate was 17.9 percent, consistent with the same period last year[3]. Cash Flow and Shareholder Returns - Cash and equivalents and short-term investments were $9.8 billion, down approximately $0.2 billion from last year[5]. - The company returned approximately $1.6 billion to shareholders, including dividends of $557 million, up 7 percent from the prior year[7]. - As of November 30, 2024, a total of 112.8 million shares have been repurchased under the program for a total of approximately $11.3 billion[7]. Inventory Status - Inventories for NIKE, Inc. were $8.0 billion, flat compared to the prior year[5].