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NIKE(NKE) - 2025 Q2 - Quarterly Results
NKENIKE(NKE)2024-12-19 21:15

Revenue Performance - Second quarter revenues were 12.4billion,down8percentonareportedbasiscomparedtotheprioryearanddown9percentonacurrency−neutralbasis[2].−TotalrevenuesforNike,Inc.decreasedby812.4 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 13,388millionforthesameperiodin2023[18].−TotalrevenuesforthesixmonthsendedNovember30,2024,were13,388 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 26,327millioninthesameperiodof2023[18].SegmentPerformance−NIKEDirectrevenueswere26,327 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 6.9billion,down3percentonareportedbasis[3].−FootwearsalesinNorthAmericadroppedby146.9 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 3,757millionintheprioryear[18].−TotalNikeBrandrevenuesdecreasedby73,757 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 12,872millioninthesameperiodin2023[18].−Converserevenuesdecreasedby1712,872 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 519millioninthesameperiodlastyear[18].−Equipmentsalesincreasedby14519 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 479millioninthesameperiodlastyear[18].ProfitabilityMetrics−Netincomewas479 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,adecreaseof24percent[3].−Earningsbeforeinterestandtaxes(EBIT)forNike,Inc.fellby270.78, 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 1,900millioninthesameperiodlastyear[20].−GreaterChinaexperienceda271,900 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 514millioninthepreviousyear[20].−NorthAmericaEBITdecreasedby10514 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 1,526millioninthesameperiodlastyear[20].−TheEBITmarginforNike,Inc.was11.31,526 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 0.2billionfromlastyear[5].−Thecompanyreturnedapproximately0.2 billion from last year[5]. - The company returned approximately 1.6 billion to shareholders, including dividends of 557million,up7percentfromtheprioryear[7].−AsofNovember30,2024,atotalof112.8millionshareshavebeenrepurchasedundertheprogramforatotalofapproximately557 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].