Nike (NKE) Q3 2025 earnings

Nike On Thursday, it warned that sales will decrease by a percentage of double numbers in the current quarter, as the giant of the new definition shoes, the confidence of the sliding consumer and the slowdown in the transformation.

At a phone conference with analysts, the President of the Finance Matt Friend said that Nike is expected to decrease its sales in the fourth financial quarter, which is scheduled to end in May, in the “low end” of the “Mid-TEENS”. Its total margin is also expected to decrease between 4 and 5 percentage points, as it intensifies efforts to liquidate excess stocks and meaningless methods that no longer resonate with consumers – a process that expects to continue in 2026.

A friend said: “We believe that the fourth quarter will reflect the largest impact of our actions, and that the opposite winds to the revenue and the total margin will begin to amend from there.” “We also move through many external factors that create uncertainty in the current operating environment, including geopolitical dynamics, new definitions, volatile foreign exchange rates and tax regulations, as well as the effect of uncertainty and other total factors on consumer confidence.”

The guidance is much worse than analysts expected. The unanimity estimates of LSEG expected Wall Street that sales would have decreased by 11.4 % in the current quarter.

The shares have decreased more than 4 % in extended trading and more than 5 % decreased so far, as of Thursday.

After the guidance, Nike beat Wall Street’s expectations in the third quarter of the financial.

Here’s how the company performs during a quarter, compared to the estimates of the analysts included in LSEG:

• Arrow’s profits: 54 cents against. 29 cents estimated
• profit: 11.27 billion dollars compared to $ 11.01 billion

The company’s net income was reported for a period of three months that ended on February 28, $ 794 million, or 54 cents per share, compared to $ 1.17 billion, or 77 cents per share, a year ago.

Sales fell to $ 11.27 billion, a decrease of about 9 % from $ 12.4 billion in the previous year. Like other retailers, NIKE witnessed a strong demand in December, followed by “Double Digit” in January and February.

While Nike achieved a strong profit victory, the expectations were low in the release and the profits decreased by 32 % from the figure of the general.

During the quarter, the Nike total margin decreased by 3.3 degrees Celsius to 41.5 %, less than 41.8 %, according to the street street. This is largely due to the costs associated with Nike’s efforts to clarify the old stock in favor of new and innovative patterns. In a press release, the company attributed its decrease in the total margin to “higher discounts, high limitations reserves in stock, the highest product costs and changes in the channel’s mixture.”

Meanwhile, sales decreased by 9 %, driven by vulnerability in China. During this quarter, sales decreased by 17 % in the main region to 1.73 billion dollars, and expected 1.84 billion dollars, according to the street street.

“I spent some time there in December. I haven’t been there for some time. The competition is more aggressive than I remembered,” said CEO Elliot Hill, who left Nike in 2020 and returned last year. “So we just have to speed up our pace.”

The launch of Thursday comes about five months of Hill’s period as an executive president and his efforts to move at work and regulate. He focused on increasing wholesaler partners, preparing innovation and athletes who fled to new competitors, but the work has not yet achieved results.

“I will start saying that I am proud of the progress we made against the main measures that we committed to 90 days ago. While we have met the expectations that we have identified, we are not satisfied with our total results,” Hill told analysts. “We can be better.”

During the quarter, sales on NIK’s direct channels decreased by 12 % to $ 4.7 billion. Wholesale revenues decreased by 7 % to $ 6.2 billion.

In addition, since Hill took over, the company is now competing with a new set of dynamics that can make its return more difficult to implement.

In the three months that have passed after Nike reported its profits, President Donald Trump put a 20 % new tariff on the goods imported from China, consumer morale decreased, and Retail sales in both January and February It was weaker than expected.

Among the hundreds of suppliers and manufacturers with them, there are about 24 % of them in China, according to Manufacturing detection Posted in January. If the retailer does not raise prices to compensate for the definitions and cannot pay the cost completely to the suppliers, Nike margins are expected to take great success from the new duties. On a call on Thursday, Nike did not say whether to raise prices or how the new duties would affect exactly margins.

Moreover, when consumers do not feel confident and retreat from spending, estimated products such as clothes and new shoes are one of the first things they cut in favor of necessities. Over the past few years, the markets of sport shoes and total clothes have been slow because consumers have cut clothes and shoes. But until recently, strong companies were still working well and enjoying the market share of weakest competitors.

However, that The trend began to shift During the past few weeks, the most powerful companies have started voting to warn the spending on the soft consumers when they reported the profits of the first quarter, which raised questions about the health of the economy.

During the quarter, sales in North America – the largest market in Nike – decreased by 4 % to $ 4.86 billion. However, revenues in the region were better than $ 4.53 billion that analysts expect, according to Streetaccount.

NIKE is widely expected to restore the market share it lost and reset its business, and some families say that the company’s problems have exceeded exaggeration. However, economic definitions and concerns may mean that the transformation of the retailer may take longer, and be more difficult, than expected.

What is the key to the Nike transformation plan is its ability to redesign innovation and create a kind of shoes and leading clothes in the industry that made it a long -standing market leader. During a call with analysts, Hill said that the early versions of the new Pegasus Premium were “sold” almost all over North America and will expand until the fall of 2025. ROMero 18, which was created for daily hostility, witnessed “suspended” results, and NIKE plans to double the distribution by mid -April.

“It will take time to reach the sound level to replace a handful of classic privileges that we have succeeded, but our approach is simple,” said Hill. “It helps consumers to love something new from Nike, and this is something that does not replace the icon to another.”

NIKE has already made great steps in its efforts to develop the female consumer base, another major component to enhance revenue and clothing sales. Last month, she announced it was As a team with the Kim Kardashian brand SKIMS brand To create a new production line called Nikeskims, which includes clothes, shoes and accessories. The loud partnership is expected to give Nike improvement with women and allow them to compete better LululeMonAlo Yoga and Vuori, which meets women more than Nike currently.

Moreover, Nike appeared for the first time in a new advertising campaign directed towards mathematics during Super Bowl, the first big advertisement in the game in decades. The campaign showed that arrival in mathematics and seizure of the tanna on women’s sport will be a focused point for the Hill Strategy.

If NIKE is able to show positive signs of new products and partnership launch operations, the rest of the opposite winds may be drowned as noise.