Nike’s Q2 2025 Earnings: An 8% Revenue Drop Despite Surpassing Predictions
Nike unveiled its second-quarter fiscal 2025 earnings on December 19, showcasing a revenue of $12.35 billion. This figure marks an 8% decline year-over-year, yet it surpasses Wall Street’s expectations. The earnings per share for the athletic apparel behemoth stood at $0.78, indicating a 24% drop compared to the same period in the previous year.
Newly appointed CEO, Elliott Hill, who rejoined the company in October, confessed that Nike had “lost our obsession with sport“. He vowed to reposition athletes at the core of every decision. The company witnessed declines across all four geographic regions, with Greater China experiencing the most drastic drop at 17%.
Net income plummeted to $1.2 billion, marking a 26% decrease from the previous year, while gross margin shrank 100 basis points to 43.6%. The decline was attributed to aggressive discounting, increased promotional activities, and a strategic shift away from prioritizing digital revenue under the previous leadership.
Despite an initial 10% surge in after-hours trading, Nike shares wiped out gains during the earnings call. The stock has plummeted 28% in 2024, significantly underperforming the S&P 500’s 23% gain over the same period.
Source: Nike Inc. Reports Fiscal 2025 Second Quarter Results