NIKE, Inc. Revenue & Financials

Forget the revenue number for a moment. The most revealing financial fact about Nike in 2025 isn't that revenue fell 10% to $46.3 billion. It's that net income margins compressed to 6.9% — nearly half the 12-13% Nike delivered at its peak. A company generating $46 billion in sales should be printing $5-6 billion in profit. Instead, it made $3.2 billion. The gap between those numbers is the cost of strategic mistakes. The margin compression comes from three places simultaneously. First, markdowns: excess inventory from the retro oversaturation era forced Nike to discount aggressively, destroying the full-price economics that premium brands depend on. Second, tariffs: 300 basis points of gross margin impact in Q3 FY2026 from North American trade policy — roughly $340 million annualized that goes straight to the government instead of shareholders. Third, the deliberate marketplace cleanup: pulling product to restore scarcity means less revenue flowing through a fixed cost base. Q3 FY2026 (ended February 2026) showed the first signs of stabilization: revenue flat at $11.28 billion, beating analyst expectations after quarters of decline. But net income still fell 35% to $520 million as the cleanup costs continued. The stock market's verdict is harsh — Nike trades around $44-46 per share, down from $179 in November 2021. That $214 billion in destroyed market cap represents one of the largest value declines in consumer goods history. The revenue history tells a story of a company that grew steadily from $39.1B (FY2019) to $51.4B (FY2024), then gave back five years of growth in twelve months. Nike Direct — once the growth engine — declined 13% in FY2025, with digital sales falling 20%. The channel that was supposed to replace wholesale couldn't sustain demand without compelling new product.