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Nike Inc. (NKE) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing reports a decrease in revenues to $12.4 billion for the second quarter of fiscal 2025, compared to $13.4 billion for the same period in fiscal 2024. On a currency-neutral basis, revenues decreased by 9%.
Nike Direct revenues were $5.0 billion, down from $5.7 billion in the previous year, representing 42% of total Nike Brand revenues. Wholesale revenues were $6.9 billion, compared to $7.1 billion in the previous year.
Gross margin decreased by 100 basis points to 43.6%, primarily due to higher discounts and changes in channel mix.
Net income for the quarter was $1.163 billion, a decrease from $1.578 billion in the previous year. Diluted earnings per share were $0.78, down from $1.03.
Nike's inventories stood at $8.0 billion, a 6% increase from May 31, 2024, primarily due to an increase in units.
The company returned approximately $1.6 billion to shareholders through share repurchases and dividends during the quarter.
Nike's North America revenues decreased by 8% on a currency-neutral basis, with declines in the Jordan Brand and Women's categories.
In Europe, Middle East & Africa (EMEA), revenues decreased by 10% on a currency-neutral basis, driven by declines in Men's, Women's, and Kids' categories.
Greater China revenues decreased by 11% on a currency-neutral basis, primarily due to lower revenues in Men's and the Jordan Brand.
Asia Pacific & Latin America (APLA) revenues decreased by 2% on a currency-neutral basis, with declines in Korea and Central and South America.
Converse revenues decreased by 18% on a currency-neutral basis, with declines in all territories.
The company continues to focus on repositioning its business to drive long-term shareholder value, despite the current negative impact on revenues and gross margin.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nike Inc. quarterly 10-Q report dated January 3, 2025. To report an error, please email earnings@qz.com.