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The world’s largest sportswear brand witnesses a year of margin pressure, portfolio recalibration and strategic contraction.
Financials
19 January, 2026
Table of contents
Nike, Inc. ended its fiscal year 2025 reflecting a deliberate attempt to reset product categorisation, distribution, and inventory after several years of expansion. The group published its annual financial report in July 2025, showing a double-digit decrease in revenues, mostly driven by softened global consumer demand, a sharp pullback in NIKE Brand Digital, and highlighted promotional intensity.
Even though profits were under pressure, the company’s difficulties in 2025 were mostly due to planned changes in strategy, not because the business itself was weak. The management knowingly focused on rebalancing the marketplace, normalising inventory, and sustainably investing in sports and brand marketing. The revenue remained above $45 billion, showcasing the continued global scale of the company, irrespective of headwinds that affected the sportswear market.
| KPI | FY2025 ($m) | YoY % | FY2024 ($m) | YoY % | FY2023 ($m) | YoY % | FY2022 ($m) | YoY % | FY2021 ($m) |
|---|---|---|---|---|---|---|---|---|---|
| Revenues | 46.309 | -10,0% | 51.362 | +0,3% | 51.217 | +9,6% | 46.710 | +4,9% | 44.538 |
| Net income | 3.219 | -43,5% | 5.700 | +12,4% | 5.070 | -16,1% | 6.046 | +5,6% | 5.727 |
NIKE recorded total turnover of $46,309 billion with a 10% YoY decrease, marking a clear decline following two consecutive years with more than $51 billion in revenue. The drop shows the reduced digital demand, constraints in intentional supply across footwear franchised, and a higher promotional activity as the group focused on excess inventory.
The net income fell to $3.219 million, down more than 40% year on year, reflecting the impact of gross margin pressure, sustained investment in demand creation, and markdown-led inventory actions. Even when NIKE has managed to reduce some costs in product and logistics, those cost savings were not big enough to compensate for the negative impact of lower sales volumes and pricing pressure.
From the perspective of the whole industry, NIKE’s performance in the fiscal year still places it in front of several major competitors in terms of latest momentum despite its unmatchable scale. Adidas Group showcased a revenue of €23,68 billion in FY2024, up by 10% year-on-year, supported by an improved take on inventory and stronger sell-through in footwear. Puma SE reported a turnover of €8,8 billion with optimistic growth but highlighted a marginal pressure. Under Armour, Inc. recorded a revenue of $5,2 billion, a 9% decrease Y-o-Y, with operating losses that reflect an aggressive restructuring and wholesale rationalisation.
| Region | Revenues ($ million) | YoY % |
|---|---|---|
| North America | 19.572 | -9% |
| Europe, Middle East & Africa (EMEA) | 12.257 | -10% |
| Greater China | 6.586 | -13% |
| Asia Pacific & Latin America (APLA) | 6.251 | -7% |
| Global Brand Divisions | 48 | +7% |
| Total NIKE Brand | 44.714 | -10% |
Region-wise, the NIKE brand reflected an uneven demand recovery in performance through its core market. North America remained the largest market for the label, generating around $19,6 billion and accounting for 44% of the overall revenue, but a 9% slump compared to the previous year. In EMEA, revenue reached $12,26 billion with broad performance aligned to industry trends. The tourism flow stabilised, and the retail responsiveness improved, but it had a weaker domestic demand. China generated €6,58 billion in revenue, lower than competitors because they had a stronger focus on premium lifestyle and jewellery, as the domestic competition intensified and the global demand softened. Asia Pacific & Latin America generated $6,25 billion, displaying a better resilience with emerging market demand and balanced channel mix.
The remaining revenues were generated by Converse ($1,692 billion) and Corporate ($97 billion), comprising foreign currency hedge profit and losses with the revenues reported by entities in NIKE brand geographic operating segments and Converse.
The wholesale remained the primary channel in FY2025, accounting for 58% of the brand revenue, while NIKE Direct had 42%. This showcases a recalibration after years of direct-to-consumer expansion while prioritising healthier dynamics in the marketplace and decreased dependency on promotions.
From the perspective of the product category, footwear continues to anchor the company with 66% in NIKE Brand revenue. Apparel was 29%, and equipment remained marginal at 5%. This reinforces NIKE’s identity as the performance-based footwear company.
FY2025 marked a shift from expansion-based growth to operational discipline. NIKE reduced its supply in selected footwear categories, hiked markdown activity, and chose to reduce excess stock, even though this lowered sales in the short term. The reset was created to restore the integrity of pricing and balance the marketplace again, following years of assortment and digital expansion.
A key element of the strategy was NIKE Direct’s recalibration. Management stepped back from DTC scaling, enabling the wholesaler to remain the dominant channel in order to reinforce retail partnerships and full-price sales.
Rather than a broad product expansion, NIKE focused on fewer, globally scalable franchises, especially in basketball and running. Footwear remains the central space, accounting for two-thirds of NIKE Brand revenues.
FY2025 highlighted a more structured approach to the women’s category. Long-term partnerships with Caitlin Clark (April 2024) and A’ja Wilson (May 2024) positioned the brand using women’s basketball as a scalable performance and cultural growth platform. The brand also announced the launch of NikeSKIMS in February 2025, signalling an intent to combine performance credibility with fit-led, lifestyle-based design.
Elliott Hill was appointed as President and CEO in September 2024, marking a renewed emphasis on marketplace discipline, product relevance, and execution. The leadership change signals a continuity in brand values along with a tighter operational focus.
Despite the revenue decline, NIKE maintained an elevated demand for investments in creation in the fiscal year. The “Winning Isn’t for Everyone” campaign, launched in August 2024, showcased NIKE’s commitment to elite sports, long-term brand equity, and competitive mindset.
NIKE’s results in FY2025 represent a revenue decline and a sharp drop in profitability, reflecting over-dependency on promotions, digital overextension, and excess inventory built up as a result of the post-pandemic expansion phase.
Looking forward to the next few years, NIKE is centred on product focus, sharper marketplace execution, and margin stabilisation. The growth opportunities are highly concentrated in the women’s category, basketball, and running. While EMEA and selected emerging markets are likely to act as next-to-be-focussed stabilisers as the global demand normalises. China remains the key swing factor, with recovery dependent on local storytelling, competitive advantages, and product relevance.
Overall, NIKE enters the next phase more selective, leaner, and strategically refocused. While near-term volatility is more likely to persist, the innovation capabilities, the brand’s global scale, and marketing power position the company for a gradual return to profitable growth once the conditions of the marketplace stabilise.
Cover Image: Business Insider