Nike has reported an extended sales slump in its Q4 results.
Fourth quarter revenues for the sneaker and sportswear giant were down 12% on a reported basis to US$11.1 billion, with sales for the 2025 fiscal year falling 10% to $46.3 billion.
The company’s reported net income also fell from $1.5 billion, or 99 cents per share in Q4 2024 to $211 million, or 14 cents per share in the fourth quarter of 2025.
Nike President and CEO Elliot Hill said while these results are in line with the company’s expectations, they weren’t ideal.
“Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions," Hill said.
"As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offence. This will accelerate our Win Now actions to reposition our business for future growth."
While the majority of Nike’s numbers have fallen, Nike stores proved to be a bright spot with a 2% increase in sales.
The company took its biggest financial hit from its turnaround plan in its fiscal fourth quarter, and while the worst may be behind the company, new challenges like tariffs could prove difficult.
“With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1 billion”, executive vice president and chief financial officer Matt Friend said.
Friend said Nike plans to mitigate the cost over time through tweaks to its supply chain, working with its factory and retail partners and implementing price increases.
While 16% of its supply chain is currently in China, Nike plans to reduce this to a single-digit number by the end of fiscal 2026.
“Despite the current elevated tariffs [on] Chinese products imported into the United States, manufacturing capacity and capability in China remain important to our global source base,” Friend said.
At the time of writing, Nike's (NYSE:SKE) stocks were up 2.81% to $62.54. The company’s market cap is $92.13 billion.
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