Nike stock holds after fiscal 2025 sales and profit pressure

Nike stock reflects fiscal 2025 pressure as revenue fell 12% to $46.3 billion and net income dropped 44% to $3.2 billion, while the company closed the year with gross margin at 42.7%.

Nike Inc. (US6541061031) closed fiscal 2025 with revenue of $46.3 billion, down 12% from the prior year, while net income fell 44% to $3.2 billion and gross margin narrowed to 42.7%. The company is trading through a year shaped by lower sales, weaker profitability and a reset in operating execution.

Revenue down 12%

Fiscal 2025 revenue of $46.3 billion compared with $51.4 billion in fiscal 2024, a decline of about 12%. Gross margin ended the year at 42.7%, which was below the prior-year level of 44.6% and shows how pricing, mix and discounting fed into the margin squeeze.

Net income dropped to $3.2 billion from $5.7 billion in fiscal 2024, a decline of 44%. That gap matters because it shows the profit impact was larger than the top-line fall, leaving less room for buybacks, reinvestment and earnings leverage.

Profit fell faster

The earnings profile also weakened in the fourth quarter of fiscal 2025, when Nike reported revenue of $11.1 billion, down 12% year over year. The company said diluted earnings per share were $0.66 in the quarter, versus $0.99 a year earlier.

Inventories ended fiscal 2025 at $7.5 billion, down 11% from the prior year. That is a useful marker for investors because inventory reduction often signals how quickly a consumer brand is clearing product and restoring balance in the channel.

Gross margin at 42.7%

Nike's gross margin of 42.7% in fiscal 2025 compares with 44.6% in fiscal 2024, a decline of 1.9 percentage points. The move shows that the operating reset was not only about volume, but also about the economics of each dollar of sales.

For a consumer brand with a global distribution footprint, the combination of lower revenue, lower earnings and lower margin is the central financial story of the year. The market will usually weigh those figures against the pace of inventory normalization and the next stage of revenue recovery.

Running and basketball

Product breadth still matters to the investment case, and Nike continues to lean on its footwear franchises, led by running and basketball. Those categories remain the clearest channel through which the company can improve sell-through, support margins and rebuild growth.

The product mix also matters because it links directly to margin recovery. If higher-value footwear and cleaner inventory trends hold, the fiscal 2025 profit reset can become a base rather than a ceiling.

Trading level and venue

Nike shares trade on the New York Stock Exchange in USD. A dated quote or market-cap snapshot was not available in the current result set, so the article uses the latest evidenced fiscal 2025 operating figures and margin data as the market context.

The stock story is therefore anchored in fundamentals: $46.3 billion in fiscal 2025 revenue, $3.2 billion in net income, and a 42.7% gross margin. Those three figures define the starting point for any valuation read-through.

Nike Inc. fact box

• Company: Nike Inc.
• ISIN: US6541061031
• Ticker: NYSE: NKE
• Trading venue: New York Stock Exchange
• Sector / Industry: Consumer Discretionary / Footwear & Accessories
• Index membership: S&P 500