BEAVERTON, Ore. – Nike Inc. shares dipped 1% to $62 on Thursday afternoon following the release of its fourth-quarter 2025 results. The figures aligned with market expectations but fell short of the company’s aspirations.
Immediate Impact
The sportswear giant reported a significant decline in net income, which plummeted 86% to $211 million from $1.5 billion in the same period last year. Diluted earnings per share also saw a steep drop, falling to 14 cents from 99 cents. Sales were recorded at $11.1 billion, marking a 12% decrease from the previous year’s $12.6 billion.
Key Details Emerge
Despite the downturn, Nike’s results narrowly surpassed Wall Street’s predictions. Analysts had anticipated earnings per share of 13 cents, according to LSEG. Nike’s fourth-quarter revenues were driven by declines across all geographies, with the Nike brand’s revenues falling 11% to $10.8 billion.
By the Numbers
Net Income: $211 million, down 86%
Earnings Per Share: 14 cents, down from 99 cents
Sales: $11.1 billion, down 12%
Nike Direct Revenues: $4.4 billion, down 14%
Footwear Revenues: $7.2 billion, down 13%
Apparel Sales: $3 billion, down 10%
Industry Response
Elliott Hill, the president and CEO, acknowledged the results were not where the company wanted them to be. “Moving forward, we expect our business to improve as a result of the progress we’re making through our Win Now actions,” Hill stated.
Matthew Friend, executive vice president and CFO, added that the fourth quarter “reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here.”
What Comes Next
Looking ahead, Nike did not provide guidance for fiscal 2026. However, it announced a strategic focus on its sport offense realignment, aiming to enhance its product portfolio and consumer engagement. Hill emphasized that the next steps involve aligning teams to lead with sport to accelerate growth.
Background Context
This development builds on a challenging year for Nike, which reported full fiscal year revenues of $46.3 billion, a 10% decline. Net income for the year dropped 44% to $3.2 billion. The company’s strategy has been to rebuild its wholesale channel, which saw a 9% revenue decline in the fourth quarter.
Expert Analysis
Industry analysts suggest that Nike’s focus on digital transformation and store optimization will be crucial in navigating the current market dynamics. The company’s emphasis on strategic realignment is seen as a positive move to regain momentum.
Regional Implications
The timing is particularly significant as Nike aims to strengthen its position across global markets. The decline in Nike Brand Digital revenues by 26% highlights the challenges faced in digital channels, which the company plans to address in the coming fiscal year.
As the company turns the page on a difficult fiscal year, its future strategies will be closely watched by investors and industry experts alike.
