Nike just posted its fiscal Q4 2025 earnings and the numbers are rough. Revenue came in at $11.1 billion, down 12% from the same quarter last year. Net income dropped to $211 million, down 86%. Gross margin fell 440 basis points to 40.3%. Digital sales collapsed 26%. Direct-to-consumer revenue dropped 14%. Wholesale fell 9%. Jordan brand revenue declined 16%. And yet, the stock jumped over 12%.
China was the biggest drag. Greater China revenue fell 21%. Nike blamed macro uncertainty and weak digital traffic. But the deeper issue is brand erosion. Local competitors are gaining ground. Nike is losing relevance in a market that used to be its growth engine.
Converse revenue dropped 26% to $357 million. Footwear revenue fell 13% to $7.2 billion. Apparel was down 10% to $3 billion. There’s no segment holding up. The company is still sitting on $8.5 billion in inventory, flat year over year. That means they haven’t cleared the backlog. More discounting is coming.
Marketing spend rose 15% to $1.1 billion. Nike is trying to buy back momentum. But the product pipeline is thin. CEO Elliott Hill said the company is “turning the page” and launching a “sport offense” strategy. That’s a reorg. Not a fix.
Nike didn’t provide full-year guidance for fiscal 2026. They expect Q1 revenue to decline again and gross margin to remain under pressure. That’s not a turnaround. That’s more of the same.
The stock rallied because expectations were low. But the fundamentals are still deteriorating. China is shrinking. Jordan is slipping. Digital is collapsing. And the brand is leaning on markdowns to move product.
Sources
https://www.cnbc.com/2025/06/26/nike-nke-q4-2025-earnings.html