Financial Performance - NIKE, Inc. revenues for Q3 fiscal 2025 were $11.3 billion, a decrease of 9% compared to $12.4 billion in Q3 fiscal 2024[90]. - Net income for Q3 fiscal 2025 was $794 million, a decline of 32% from $1.172 billion in Q3 fiscal 2024[95]. - Earnings before interest and taxes (EBIT) for Q3 fiscal 2025 was $826 million, down 39% from $1.352 billion in Q3 fiscal 2024[93]. - For the first nine months of FY2025, NIKE, Inc. revenues totaled $35.2 billion, an 8% decrease from $38.8 billion in the same period of FY2024[101]. - Total revenues for the three months ended February 28, 2025, decreased by 4% to $4,864 million compared to $5,070 million in the same period last year[118]. - Total NIKE Brand EBIT decreased by 41% to $1,257 million for the three months ended February 28, 2025, compared to $2,128 million in the prior year[117]. - Reported EBIT decreased 26%, reflecting lower revenues and increased selling and administrative expenses driven by higher demand creation expenses[132]. Revenue Breakdown - NIKE Direct revenues were $4.7 billion for Q3 fiscal 2025, down 12% from $5.4 billion in Q3 fiscal 2024, representing approximately 43% of total NIKE Brand revenues[90]. - NIKE Brand revenues, accounting for over 90% of total revenues, decreased 9% on a reported basis and 6% on a currency-neutral basis, driven by declines in the Jordan Brand, Men's, Kids', and Women's categories[98]. - NIKE Brand wholesale revenues decreased 7% on a reported basis and 4% on a currency-neutral basis, impacted by lower revenues in Greater China, EMEA, and Asia Pacific & Latin America[98]. - NIKE Direct revenues were $4.7 billion in Q3 FY2025, down 10% from $5.4 billion in Q3 FY2024, primarily due to a 15% decline in NIKE Brand Digital sales[99]. - Greater China revenues decreased by 17% to $1,733 million for the three months ended February 28, 2025, compared to $2,084 million in the same period last year[128]. - APLA revenues decreased 4% on a currency-neutral basis, primarily due to lower revenues in Southeast Asia and India, with NIKE Direct revenues down 4% due to digital sales declines of 8%[135]. - Converse revenues decreased 16% on a currency-neutral basis, driven by revenue declines in all territories, with unit sales down 10% and ASP down 6% due to higher discounts[142]. Cost and Margin Analysis - Gross margin for Q3 fiscal 2025 decreased by 330 basis points to 41.5%, compared to 44.8% in Q3 fiscal 2024[90]. - Gross profit for Q3 FY2025 was $4.675 billion, a 16% decrease from $5.562 billion in Q3 FY2024, with a gross margin of 41.5%, down 330 basis points year-over-year[100]. - Gross margin contracted by 210 basis points primarily due to lower ASP and higher inventory obsolescence reserves[122]. - Gross margin contraction of approximately 470 basis points for Converse, primarily due to lower ASP, partially offset by lower product costs[142]. - The effective tax rate for Q3 FY2025 was 5.9%, a significant decrease from 16.5% in Q3 FY2024, primarily due to a one-time, non-cash deferred tax benefit[111]. Expenses and Investments - Demand creation expense increased by 8% to $1.088 billion in Q3 fiscal 2025, compared to $1.011 billion in Q3 fiscal 2024[95]. - Total selling and administrative expenses for Q3 FY2025 were $3.887 billion, an 8% decrease from $4.226 billion in Q3 FY2024, with demand creation expenses increasing by 8%[103]. - Selling and administrative expenses increased by 12% driven by higher operating overhead and demand creation expenses[122]. - Cash provided by operations was $3,235 million for the first nine months of fiscal 2025, down from $4,810 million for the same period in fiscal 2024[156]. - Cash used by investing activities was an outflow of $289 million for the first nine months of fiscal 2025, compared to an inflow of $1,184 million for the same period in fiscal 2024[157]. - Cash used by financing activities was an outflow of $4,176 million for the first nine months of fiscal 2025, a decrease from $4,468 million in the same period of fiscal 2024[158]. Shareholder Returns - NIKE returned approximately $1.1 billion to shareholders in Q3 fiscal 2025 through dividends and share repurchases[90]. - The company repurchased 34.4 million shares for $2,753 million at an average price of $80.02 per share under the $18 billion share repurchase plan[159]. Market Conditions and Risks - External factors such as geopolitical dynamics and fluctuating foreign exchange rates are creating uncertainty and volatility in the operating environment[88]. - The impact of foreign exchange rate fluctuations on consolidated revenues was a detriment of approximately $310 million for the three months ended February 28, 2025[153]. - The company has not experienced difficulty accessing capital or credit markets in fiscal 2025, although future volatility may increase costs[165]. - There have been no material changes in market risk disclosures compared to the previous Annual Report[174]. Strategic Initiatives - NIKE plans to reduce the supply of certain footwear products while shifting focus to new and innovative products[91]. - The company is repositioning NIKE Brand Digital as a full-price platform and reinvesting in wholesale distribution[91].

Core Viewpoint - Nike Inc is facing significant stock pressure due to President Trump's tariff announcement, which imposes high levies on goods manufactured in China and Vietnam [1] Group 1: Stock Performance - Nike's stock has dropped 11.3% to $57.62, marking its lowest level since November 2017 and extending a bear gap post-earnings [2] - The stock is experiencing a year-to-date deficit of 23.5% [2] Group 2: Supply Chain Impact - The company manufactures approximately 50% of its footwear in China and a substantial portion of its apparel in Vietnam, making it vulnerable to the new tariffs of 54% and 46% respectively [1] Group 3: Options Trading Activity - Following the tariff news, options traders have significantly increased activity, with over 72,000 calls and 82,000 puts traded, which is five times the average intraday volume [3] - The most popular contract being traded is the April 55 put, indicating a bearish sentiment among traders [3]

Core Insights - The article discusses the investment position of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Nike [1] Company Position - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has a disclosure policy regarding its investment positions [1] Compensation and Affiliations - Parkev Tatevosian is an affiliate of The Motley Fool and may receive compensation for promoting its services [1] - If subscriptions are made through his link, he will earn additional income that supports his channel [1]

Core Viewpoint - Nike is experiencing a decline in revenue and profits, leading to a significant drop in stock valuation, which is now at a historically low level, but the brand's strength and new leadership may provide a path for recovery [1][2][3][4]. Financial Performance - Revenue for Nike is down 9% year-over-year through the fiscal third quarter of 2025, while demand creation expenses have increased by 8% [1] - Net income has fallen by 28% to $3 billion in fiscal 2025 compared to the same period in fiscal 2024 [2] - Nike's stock is currently valued at just below 2 times sales, the lowest since 2013 [2] Brand Strength - Nike boasts nearly $50 billion in annual revenue and operates in almost 200 countries with over 40,000 distribution points, indicating strong brand recognition [5] - The brand's competitive advantage is significant, suggesting that if Nike can leverage this, it may rebound from its current challenges [6] Leadership Changes - New CEO Elliott Hill, who has extensive experience with Nike, is expected to bring renewed energy and focus to the company [7] - Hill's previous work on marketing the Jordan brand may enhance Nike's product pipeline and partnerships [8] Profit Margin and Growth Potential - Current operating margin is around 10%, below the historical average of 12%, indicating potential for improvement [10] - A recovery in profit margins could lead to favorable stock performance, but sustainable top-line growth is necessary for long-term success [11][12] Market Position and Challenges - Nike remains the market-share leader in athletic apparel, but the market is mature with limited growth potential [13] - Less than half of Nike's revenue comes from North America, complicating projections for international growth amid rising global trade complexities [14]

Core Viewpoint - Nike is experiencing significant challenges, with disappointing fiscal third-quarter results and a forecast for worsening performance in the fourth quarter, leading to a seven-year low in stock price [1][2]. Financial Performance - Revenue in the third quarter decreased by 9% to $11.3 billion, while earnings per share fell by 30% from $0.77 to $0.54 [4]. - Gross margin declined from 44.8% to 41.5% as the company worked to clear inventory of legacy styles [4]. - Management anticipates a further decline of around 14% in performance for the fourth quarter, with gross margin expected to drop by 400 to 500 basis points [4]. Market Dynamics - Nike is losing market share to emerging brands like Deckers' HOKA and On Holdings, contributing to investor impatience with the current turnaround strategy under CEO Elliott Hill [1][2]. - The company is facing macroeconomic pressures, including tariffs and weak consumer discretionary spending, which contributed to a 20% stock loss in March [2]. Growth Areas - Despite overall revenue declines, Nike reported a return to growth in running, particularly with strong demand for the new Pegasus Premium, and growth in Japan and Latin America [5]. - The Asia-Pacific Latin America region showed an overall decline, but specific markets are performing better [5]. Strategic Outlook - CEO Elliott Hill is focusing on reestablishing relationships with wholesale partners and investing in performance products, viewing sports and performance gear as a key brand driver [6]. - Nike maintains a strong position in basketball and has an unmatched roster of sponsored athletes, suggesting potential for recovery [7].

Core Viewpoint - Nike is facing significant challenges in both domestic and international markets, particularly in China, leading to declining revenues and increased competition from local brands [1][2][6]. Company Performance - Nike's stock has experienced a sharp decline, down 63% from its all-time highs in late 2021, with revenue falling 7% year over year to $11.3 billion in the last quarter [2][3]. - The company's operating margin has hit a 10-year low of 10.3%, and earnings per share (EPS) have decreased over 20% from previous highs [5][9]. - Revenue in China, Nike's largest market outside the U.S., fell 15% year over year, with operating income dropping 42% [6][7]. Competitive Landscape - Competitors such as On Holding, Deckers Outdoor, and Lululemon Athletica have shown strong growth, with sales increasing 40%, 17%, and 14% year over year, respectively [3][4]. - Domestic brands like Anta are resonating better with Chinese consumers, contributing to Nike's loss of market share [7]. Management Changes - Nike has appointed Elliott Hill as the new leader to address these challenges, emphasizing the need for innovation in product assortment and a renewed focus on marketing to athletes [8][10]. - The stock currently trades at a trailing price-to-earnings ratio (P/E) of 21, close to its lowest level in the past decade, despite lower profit margins [9]. Future Outlook - Nike is forecasting revenue declines exceeding 10% for the next quarter, while competitors are expected to continue growing [10][11]. - The apparel market remains highly competitive, and despite Nike's historical dominance, the company is not invincible [11].

Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Nike [1] Company Analysis - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has a disclosure policy regarding its investment positions [1] - The Motley Fool may compensate affiliates like Parkev Tatevosian for promoting its services [1]

Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Nike [1] Company Analysis - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has a disclosure policy regarding its investment positions [1] - The Motley Fool may compensate affiliates like Parkev Tatevosian for promoting its services [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - The article discusses the investment position of Parkev Tatevosian, CFA, who has no holdings in the stocks mentioned [1] - The Motley Fool has positions in and recommends Nike, indicating a positive outlook on the company [1] - There is a disclosure policy in place by The Motley Fool regarding its investment recommendations [1]