Nike reported a 9% drop in revenue for Q3 2025, which ended on 28 February, bringing total sales down to $11.3 billion.
Net income dipped by 32% to $0.8 billion, while diluted earnings per share decreased by 30% to $0.54.
Despite the declining revenue, Nike performed ahead of Wall Street’s expectations, reported by LSEG, with an estimated revenue of $11.01 billion and predicted earnings per share of $0.29.
The slump in sales was driven by a major operational shakeup that increased costs by refreshing the outdated inventory, higher production costs, and changes in the channel mix, according to the company.
Elliott Hill, Nike’s president and CEO said: “While we met the expectations we set, we’re not satisfied with our overall results. We can and will be better.”
Moving forward, the company predicted a low outlook, with Q4 revenue expected to fall in the mid-teens range due to a potential negative impact from tariffs and unfavorable shipment timing.
Matt Friend, Nike’s chief financial officer added: “Looking ahead, we believe that the fourth quarter will reflect the largest impact from our Win Now actions and that the headwinds to revenue and gross margin will begin to moderate from there.
“We are also navigating through several external factors that create uncertainty in the current operating environment, including geopolitical dynamics, new tariffs, volatile foreign exchange rates, and tax regulations, as well as the impact of this uncertainty and other macro factors on consumer confidence.”
Nike has planned a turnaround strategy moving forward, which includes elevating digital marketing and brand storytelling, increasing its assortment in sportswear apparel, and improving product innovation.
The sportswear giant recently launched a collaboration with shapewear line Skims in February to offer a women’s sportswear apparel as part of its shift into the athletic market.
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