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NIKE(NKE) - 2025 Q3 - Quarterly Results
NKENIKE(NKE)2025-03-20 20:16

Financial Performance - Third quarter revenues were 11.3billion,down911.3 billion, down 9% on a reported basis and down 7% on a currency-neutral basis compared to the prior year[4]. - Net income was 0.8 billion, down 32%, with diluted earnings per share at 0.54,adecreaseof300.54, a decrease of 30%[5]. - Total revenues for NIKE, Inc. decreased by 9% to 11,269 million for the three months ended February 28, 2025, compared to 12,429millionforthesameperiodin2024[16].−Thedilutedearningspershare(GAAP)forthethreemonthsendedFebruary28,2025,was12,429 million for the same period in 2024[16]. - The diluted earnings per share (GAAP) for the three months ended February 28, 2025, was 0.77, compared to 0.98excludingrestructuringcharges[20].−Thecompanyreporteda280.98 excluding restructuring charges[20]. - The company reported a 28% decrease in income before income taxes, totaling 3,567 million for the nine months ended February 28, 2025[18]. Revenue Breakdown - NIKE Direct revenues were 4.7billion,down124.7 billion, down 12% on a reported basis and down 10% on a currency-neutral basis, primarily due to a 15% decrease in NIKE Brand Digital[5]. - Total NIKE Brand revenues fell by 9% to 10,890 million for the three months ended February 28, 2025[16]. - Footwear sales in North America dropped by 9% to 3,132millionforthethreemonthsendedFebruary28,2025,whiletotalsalesintheregiondecreasedby43,132 million for the three months ended February 28, 2025, while total sales in the region decreased by 4%[16]. - Greater China experienced a 17% decline in total sales, amounting to 1,733 million for the three months ended February 28, 2025[16]. - The total sales for Converse decreased by 18% to 405millionforthethreemonthsendedFebruary28,2025[16].MarginsandCosts−Grossmargindecreased330basispointsto41.5405 million for the three months ended February 28, 2025[16]. Margins and Costs - Gross margin decreased 330 basis points to 41.5%, primarily due to higher discounts and product costs[5]. - The EBIT margin for NIKE, Inc. was 7.3% for the three months ended February 28, 2025, down from 10.9% in the same period last year[18]. Shareholder Returns - The company returned approximately 1.1 billion to shareholders in the third quarter, including dividends and share repurchases[6]. - The company continues to have a strong track record of increasing returns to shareholders, with 23 consecutive years of increasing dividend payouts[6]. Expenses and Inventories - Demand creation expense increased by 8% to 1.1billion,primarilyduetoanincreaseinbrandmarketingexpense[5].−Cashandequivalentsandshort−terminvestmentswere1.1 billion, primarily due to an increase in brand marketing expense[5]. - Cash and equivalents and short-term investments were 10.4 billion, down approximately 0.2billionfromlastyear[10].−Inventorieswere0.2 billion from last year[10]. - Inventories were 7.5 billion, down 2% compared to the prior year, reflecting product mix shifts[10]. - Corporate expenses increased significantly, with a net loss of 470millionforthethreemonthsendedFebruary28,2025,comparedtoalossof470 million for the three months ended February 28, 2025, compared to a loss of 874 million in the same period last year[18]. - Equipment sales in North America rose by 10% to $222 million for the three months ended February 28, 2025[16].