NIKE, Inc. Reports Fiscal 2026 First Quarter Results

BEAVERTON, Ore.--( BUSINESS WIRE)--NIKE, Inc. (NYSE:NKE) today reported fiscal 2026 financial results for its first quarter ended August 31, 2025.

“This quarter NIKE drove progress through our Win Now actions in our priority areas of North America, Wholesale, and Running,” said Elliott Hill, President & CEO, NIKE, Inc. “While we’re getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment. I’m confident that we have the right focus in Win Now and that our new alignment in the Sport Offense will be the key to maximizing NIKE, Inc.’s complete portfolio over the long-term.”

“I’m encouraged by the momentum we generated in the quarter, but progress will not be linear as dimensions of our business recover on different timelines,” said Matthew Friend, Executive Vice President & Chief Financial Officer, NIKE, Inc. “While we navigate several external headwinds, our teams are focused on executing against what we can control.”

First Quarter Income Statement Review

August 31, 2025 Balance Sheet Review

Shareholder Returns

NIKE has a strong track record of returns to shareholders, including 23 consecutive years of increasing dividend payouts.

In the first quarter, the Company returned approximately $714 million to shareholders, including:

As of August 31, 2025, a total of 124.4 million shares have been repurchased under the program for a total of approximately $12.1 billion.

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on September 30, 2025, to review fiscal first quarter results. The conference call will be broadcast live via the Internet and can be accessed at https://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through approximately 9:00 p.m. PT, October 21, 2025.

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at https://investors.nike.com. Individuals can also visit https://news.nike.com and follow @NIKE.

Forward-Looking Statements

This press release contains forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.

Non-GAAP financial measures. See additional information in the accompanying Divisional Revenues table.

NIKE, Inc.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

THREE MONTHS ENDED

(In millions, except per share data)

8/31/2025

8/31/2024

Change

Revenues

11,720

11,589

Cost of sales

6,777

6,332

Gross profit

4,943

5,257

-6

Gross margin

42.2

45.4

Demand creation expense

1,188

1,226

-3

Operating overhead expense

2,828

2,822

Total selling and administrative expense

4,016

4,048

-1

% of revenues

34.3

34.9

Interest expense (income), net

(18

)

(43

)

—

Other (income) expense, net

(55

)

—

Income before income taxes

922

1,307

-29

Income tax expense

195

256

-24

Effective tax rate

21.1

19.6

NET INCOME

727

1,051

-31

Earnings per common share:

Basic

0.49

0.70

-30

Diluted

0.49

0.70

-30

Weighted average common shares outstanding:

Basic

1,476.6

1,497.7

Diluted

1,479.0

1,502.0

Dividends declared per common share

0.400

0.370

NIKE, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

August 31,

% Change

(Dollars in millions)

2025

2024

ASSETS

Current assets:

Cash and equivalents

7,024

8,485

-17

Short-term investments

1,551

1,809

-14

Accounts receivable, net

4,962

4,764

Inventories

8,114

8,253

-2

Prepaid expenses and other current assets

2,247

1,729

Total current assets

23,898

25,040

-5

Property, plant and equipment, net

4,861

4,948

-2

Operating lease right-of-use assets, net

2,727

2,792

-2

Identifiable intangible assets, net

259

Goodwill

240

Deferred income taxes and other assets

5,349

4,588

TOTAL ASSETS

37,334

37,867

-1

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt

—

1,000

-100

Notes payable

-67

Accounts payable

3,772

3,357

Current portion of operating lease liabilities

506

491

Accrued liabilities

5,923

5,075

Income taxes payable

706

693

Total current liabilities

10,911

10,628

Long-term debt

7,996

7,998

Operating lease liabilities

2,555

2,625

-3

Deferred income taxes and other liabilities

2,404

2,672

-10

Redeemable preferred stock

—

Shareholders’ equity

13,468

13,944

-3

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

37,334

37,867

-1

NIKE, Inc.

DIVISIONAL REVENUES

(Unaudited)

% Change Excluding Currency Changes 1

THREE MONTHS ENDED

(Dollars in millions)

8/31/2025

8/31/2024

Change

North America

Footwear

3,219

3,212

Apparel

1,474

1,331

Equipment

327

283

Total

5,020

4,826

Europe, Middle East & Africa

Footwear

2,021

1,952

-2

Apparel

1,106

993

Equipment

204

198

-2

Total

3,331

3,143

Greater China

Footwear

1,109

1,246

-11

-12

Apparel

362

360

Equipment

-32

-33

Total

1,512

1,666

-9

-10

Asia Pacific & Latin America

Footwear

1,061

1,052

Apparel

371

348

Equipment

-6

-7

Total

1,490

1,462

Global Brand Divisions 2

-36

-39

TOTAL NIKE BRAND

11,362

11,111

Converse

366

501

-27

-28

Corporate 3

)

(23

)

—

TOTAL NIKE, INC. REVENUES

11,720

11,589

-1

TOTAL NIKE BRAND

Footwear

7,410

7,462

-1

-2

Apparel

3,313

3,032

Equipment

630

603

Global Brand Divisions 2

-36

-39

TOTAL NIKE BRAND REVENUES

11,362

11,111

1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

3 Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program.

NIKE, Inc.

EARNINGS BEFORE INTEREST AND TAXES 1

(Unaudited)

THREE MONTHS ENDED

(Dollars in millions)

8/31/2025

8/31/2024

Change

North America

1,134

1,216

-7

Europe, Middle East & Africa

735

792

-7

Greater China

377

502

-25

Asia Pacific & Latin America

350

402

-13

Global Brand Divisions 2

(1,192

)

(1,227

)

TOTAL NIKE BRAND 1

1,404

1,685

-17

Converse

121

-68

Corporate 3

(539

)

(542

)

TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES 1

904

1,264

-28

EBIT margin 1

7.7

10.9

Interest expense (income), net

(18

)

(43

)

—

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES

922

1,307

-29

1 Management evaluates the performance of the Company's segments and allocates resources based on earnings before interest and taxes (commonly referred to as "EBIT"), which represents Net income before Interest expense (income), net and Income tax expense. Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. EBIT margin is calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

2 Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

3 Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses.