Key Takeaways NIKE's Win Now strategy targets growth via sport-led innovation and streamlined product focus. FY25 revenues for NIKE fell 10%, with headwinds from China, digital shifts and elevated inventories. LULU Q1 revenues grew 7% y/y and gross margin rose 60 bps, driven by global expansion and product traction.The dynamic world of athletic apparel is marked by two titans vying for dominance: NIKE Inc. (NKE) , the undisputed global sportswear giant, and lululemon athletica inc. (LULU) , the sleek disr ...

Core Insights - NIKE Inc. reported fourth-quarter fiscal 2025 results with revenues of $11.1 billion, a 12% decline year over year, but exceeding the Zacks Consensus Estimate of $10.69 billion [3][8] - Earnings per share (EPS) were 14 cents, down 86% from the previous year, yet above the Zacks Consensus Estimate of 12 cents [2][8] - The company's shares rose 2.8% following the results, although they have lost 1.2% over the past three months compared to a 0.1% gain in the industry [4] Revenue Breakdown - NIKE Brand revenues were $10.8 billion, down 11% year over year, affected by declines across all geographies [5] - In North America, revenues fell 11% to $4.7 billion, with NIKE Direct sales down 14% [6] - EMEA revenues decreased 9% to $3 billion, while Greater China saw a 21% drop to $1.5 billion [10][11] - APLA revenues fell 8% to $1.6 billion, with NIKE Direct dipping 1% [12] Cost and Margin Analysis - Gross profit declined 21% to $4.5 billion, with gross margin contracting 440 basis points to 40.3% due to increased discounts and supply chain issues [13] - Selling and administrative expenses rose 1% to $4.1 billion, with SG&A as a percentage of sales increasing 500 basis points to 37.4% [14] - Demand creation expenses increased 15% to $1.3 billion, while operating overhead expenses decreased 3% to $2.9 billion [15] Balance Sheet and Shareholder Returns - NIKE ended fiscal 2025 with cash and cash equivalents of $7.5 billion, down nearly 24% year over year [16] - The company returned $0.8 billion to shareholders in the fourth quarter, including $202 million in share repurchases and $591 million in dividends [18] Forward Guidance - For fiscal 2026, NIKE expects mid-single-digit revenue decline in Q1 and gross margin contraction of 350-425 basis points [24] - SG&A expenses are projected to increase by low single digits as the company invests in growth initiatives [22] - The company anticipates challenges in digital traffic and classic footwear franchises but sees potential in new product franchises [21][20]

Here's our initial take on Nike's (NKE 15.77%) fiscal 2025 fourth-quarter financial report.Key MetricsMetricQ4 FY24Q4 FY25Changevs. ExpectationsRevenue$12.6 billion$11.1 billion-12%BeatEarnings per share (adjusted)$1.01$0.14-86%BeatNIKE Direct revenue$5.1 billion$4.4 billion-14%n/aGross margin44.7%40.3%-4.4 ppn/aA Rough Quarter for NikeNike beat analyst expectations with its fiscal fourth-quarter results, but the bar was low. Total revenue tumbled 12% year over year, and adjusted earnings per share were dow ...

Key Takeaways NIKE expects Q4 revenues to fall 15% and EPS to drop 89% amid macro and lifestyle demand headwinds. China weakness, digital softness and margin pressure are key hurdles ahead of the June 26 earnings report. NKE's high costs and shrinking gross margin reflect ongoing restructuring and cost management efforts.NIKE Inc. (NKE) is slated to release fourth-quarter fiscal 2025 results on June 26. The leading sports apparel retailer is estimated to have witnessed year-over-year declines in the top a ...