Shares of Nike Inc. remained flat on Thursday afternoon following fourth-quarter 2025 results that were in-line with expectations, but not as high as the company would like.
Net income at the Beaverton, Ore.-based company in the fourth quarter was $211 million, down 86 percent from $1.5 billion in the year-ago period. Diluted earnings per share was 14 cents, a decrease of 86 percent from 99 cents at the same time last year. Net sales in the period were $11.1 billion, down 12 percent from $12.6 billion, on a reported basis, compared to the prior year.
The company’s fourth-quarter results narrowly beat analyst estimates. Analysts, on average, were expecting earnings per share of 13 cents in the quarter, with revenue expectations of $10.72 billion, according to data compiled by LSEG.
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By business segment, the company said Nike brand revenues were $10.8 billion, down 11 percent, driven by declines across all geographies. Nike Direct revenues were $4.4 billion, a decline of 14 percent, due to a 26 percent decrease in Nike Brand Digital. That was was partially offset by a 2 percent increase in Nike-owned stores.
As for Nike’s wholesale channel, which the company has steadily worked on rebuilding, revenues in the quarter were $6.4 billion, down 9 percent.
Revenues for Converse declined 26 percent, to $357 million, due to decreases across all territories, the company said.
Nike said footwear revenues dropped 13 percent to $7.2 billion, down from $8.2 billion in the same time last year. Apparel sales in the fourth quarter were $3.0 billion, down 10 percent from $3.3 billion, while equipment sales were down 2 percent to $567 million, down from $578 million.
Looking at the full fiscal year, Nike Inc. reported net revenues of $46.3 billion, down 10 percent on a reported basis from $51.4 billion in fiscal 2024. Net income in fiscal 2025 was $3.2 billion, down 44 percent, from $5.7 billion last year. Diluted earnings per share for the year was $2.16, a decrease of 42 percent from $3.73 in 2024.
By business segment, the company said Nike brand revenues for the year were $44.7 billion, down 9 percent, driven by declines across all geographies. Nike Direct revenues were $18.8 billion, down 13 percent on a reported basis, due to a 20 percent decrease in Nike Brand Digital, while Nike-owned stores were flat.
Wholesale revenues in 2025 were $25.9 billion, down 7 percent on a reported basis. And Converse revenues were $1.7 billion, down 19 percent on a reported basis, due to declines across all territories.
As for footwear sales for the year, Nike said that revenues in the category dropped 12 percent to $29.5 billion, down from $33.4 billion in 2024. Apparel sales in 2025 were $13.0 billion, down 6 percent from $13.8 billion, while equipment sales were up 6 percent to $2.2 billion from $2.1 billion last year.
Elliott Hill, who took on the role of president and chief executive officer of Nike Inc. in October, said in a statement that while the company’s financial results are in-line with its expectations, “they are not where we want 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 said.
Matthew Friend, executive vice president and chief financial officer of Nike, added that the fourth quarter “reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here.”
“I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control and executing our Win Now actions,” Friend added.
Looking ahead, Nike did not provide guidance for fiscal 2026, but said that its sport offense realignment next year “will focus on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and connect with consumers, and elevating and growing the entire marketplace.”
“As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense,” Hill added. “This will accelerate our Win Now actions to reposition our business for future growth.”
