Nike Inc. (NYSE:NKE) reported its fiscal 2025 financial results for the second quarter ending 30 November 2024.
Second-quarter revenues were US$12.4 billion, which was 8% down on a reported basis from the prior year and 9% down on a currency-neutral basis.
Nike Direct revenues were $5 billion, down 13% on a reported basis and down 14% on a currency-neutral basis. This was primarily due to a 21% decrease in Nike Brand digital and a 2% decrease in Nike-owned stores.
Nike brand revenues were $12 billion, down 7% on a reported basis and 8% on a currency-neutral basis
Wholesale values were $6.9 billion, down 3% on a reported basis and 4% on a currency-neutral abscess.
The Gross margin decreased 100 basis points to 43.6% and the diluted earnings per share was $0.78. The decreased gross margin was primarily due to higher discounts and changes in channel mix partially offset by lower product input costs as well as lower warehousing and logistics costs.
Nike President and CEO Elliot Hill said after reconvening with his teammates it had become clear that sport should be at the centre of everything they do.
"We're taking immediate action to reposition our business, so we can get back to driving long-term shareholder value,” he said.
“Our team is ready to go, and I'm confident you will see more moments of NIKE being NIKE again."
Selling and administrative expenses decreased 3% to $4 billion. However, due to an increase in sports marketing offset by a decrease in brand marketing expense, demand creation was up 1% at $1.1 billion.
Nike continues to have strong shareholder returns, returning around $1.6 billion to shareholders. This includes dividends of $557 million, up 7% from last year and share repurchases of $1.1 billion, reflecting 13.1 million shares retired as part of the Company’s four-year, $18 billion program approved by the Board of Directors in June 2022.
As of 30 November 2024, a total of 112.8 million shares have been repurchased under the program for a total of around $11.3 billion.
At the time of writing, Nike Inc. NYSE:NKE stock was trading at US$77.10, up from the last close of $76.90. The stock reached a day low of $76.43 and a day high of $77.94. Nike Inc's market capitalisation stands at $114.76 billion.
