The numbers
$11.1 billion — Nike’s This autumn 2025 full yr income, down 12% year-over-year. Revenues for the flagship Nike model have been down 11% to $10.8 billion.
$46.3 billion — Nike’s full 2025 fiscal yr income, down 10% year-over-year.
$6.4 billion — The sneaker big’s wholesale income for This autumn, which decreased 9% year-over-year. Its full-year wholesale income was $25.9 billion, down 7% year-over-year.
$4.4 billion — The model’s direct income for the quarter, which fell 14% year-over-year. Direct income for the complete yr was $18.8 billion, down 13% year-over-year.
$357 million — Converse’s income for the quarter. This declined 26% year-over-year, whereas its income for 2025 was $1.7 billion, down 19% year-over-year.
Watercooler discuss
Whereas Nike’s full-year monetary outcomes have been “not the place we wish them to be,” president and chief government officer (CEO) Elliott Hill stated the model’s subsequent step is to shift its focus from life-style advertising to efficiency put on by means of a brand new technique referred to as “Sport Offense.”
The brand new push will drive distinction inside its key sports activities, equivalent to operating, coaching, and basketball, by means of storytelling advertising efforts. It’ll additionally work in tandem with “Win Motion,” a method Hill applied when he rejoined the corporate in October 2024.
“We’ll differentiate every model (Nike, Jordan Model, and Converse) by sport, which we consider will create sharper distinction and dimension,” stated Hill. “We do know [that] once we concentrate on sport, we win.”
The exec referenced tennis participant Carlos Alcaraz’s French Open win, runner Religion Kipyegon’s record-attempting mile run, and Oklahoma Metropolis Thunder participant and Converse ambassador Shai Gilgeous-Alexander’s current NBA Finals win as key sports activities moments that the model has invested in to re-center athletes and “win again our model voice.”
Hill additionally pointed to key product launches like Las Vegas Aces participant A’ja Wilson’s signature shoe, which bought out in three minutes, as a key driver for its ladies’s basketball enterprise this previous quarter.
Whereas its wholesale efforts have been a “robust indicator of the progress” for “Win Now,” the exec stated that for this subsequent part, the model is within the technique of hiring retail entrepreneurs, merchandisers and account managers.
Relating to tariffs, the imposed taxes symbolize a “new and significant value headwind,” stated Matthew Good friend, Nike’s chief monetary officer (CFO).
To mitigate its projected “$1 billion tariff impression,” Good friend stated that the corporate will shift manufacturing to different nations.
He additionally stated that whereas China represents practically 16% of Nike’s imported footwear to the U.S., the model expects that quantity to cut back to the “excessive single-digit vary” by the top of its 2026 fiscal yr subsequent summer time.
Key quote
“I’ve been right here now eight months and I’m much more satisfied that the trail again to sustainable, worthwhile progress is thru our ‘Win Now’ actions and now implementing our ‘Sport Offense’,” stated Hill. “We’re seeing indicators that the actions are working. Our groups are energized, impressed, and competing. The actions are resonating with our [wholesale] companions and with our customers.”
