NIKE(US:NKE)2025-12-18 21:15Revenue Performance - Second quarter revenues were $12.4 billion, up 1 percent on a reported basis and flat on a currency-neutral basis[5]. - NIKE Brand revenues were $12.1 billion, up 1 percent on a reported and currency-neutral basis, primarily due to growth in North America[6]. - Total revenues for Nike, Inc. increased by 1% to $12,427 million for the three months ended November 30, 2025, compared to $12,354 million for the same period in 2024[17]. - Total Nike Brand revenues for the six months ended November 30, 2025, were $23,486 million, reflecting a 2% increase compared to $23,061 million for the same period in 2024[17]. Direct Sales and Digital Performance - NIKE Direct revenues were $4.6 billion, down 8 percent on a reported basis and down 9 percent on a currency-neutral basis, driven by a 14 percent decrease in NIKE Brand Digital[6]. - Greater China experienced a significant decline, with footwear sales dropping by 21% to $954 million for the three months ended November 30, 2025[17]. - Converse brand revenues fell by 30% to $300 million for the three months ended November 30, 2025, compared to $429 million in the same period of 2024[17]. - Equipment sales in North America increased by 12% to $280 million for the three months ended November 30, 2025[17]. Profitability and Margins - Gross margin decreased 300 basis points to 40.6 percent, primarily due to higher tariffs in North America[6]. - Net income was $0.8 billion, down 32 percent, with diluted earnings per share at $0.53, also a decrease of 32 percent[6]. - Earnings before interest and taxes (EBIT) for Nike, Inc. decreased by 29% to $990 million for the three months ended November 30, 2025, compared to $1,392 million in the same period of 2024[19]. - The EBIT margin for Nike, Inc. was 8.0% for the three months ended November 30, 2025, down from 11.3% in the prior year[19]. - The total EBIT for the Nike Brand was $1,502 million for the three months ended November 30, 2025, down 21% from $1,904 million in the same period of 2024[19]. Expenses and Investments - Demand creation expense was $1.3 billion, up 13 percent, primarily due to higher brand marketing and sports marketing expenses[6]. - The effective tax rate was 20.7 percent compared to 17.9 percent for the same period last year[6]. - Cash and equivalents and short-term investments were $8.3 billion, down approximately $1.4 billion[11]. - Inventories were $7.7 billion, down 3 percent, reflecting a decrease in units[11]. - The company returned approximately $598 million to shareholders through dividends, up 7 percent from the prior year[7]. Regional Sales Performance - North America footwear sales rose by 9% to $3,542 million for the three months ended November 30, 2025, while apparel sales increased by 7% to $1,811 million[17]. - Global Brand Divisions reported a revenue decline of 31% to $9 million for the three months ended November 30, 2025[17].