Nike (NYSE: NKE) reported better-than-expected fourth-quarter earnings on [date], despite facing significant challenges in fiscal 2025. Revenue declined 12% to $11.1 billion, while net income plunged 86% to $211 million, or $0.14 per share. Year-to-date, the stock is down 5%, underperforming the S&P 500’s 4% gain.
For fiscal 2025, total revenue was $46.3 billion (down 10%), with net income at $3.2 billion (down 44%). Nike’s brand revenue dropped 9%, with digital sales falling 20% as the company adjusted its direct-to-consumer strategy. Looking ahead, Nike anticipates Q1 sales to decline by a mid-single-digit percentage.
The company faces cost increases due to tariffs, projected at $1 billion, and plans to reduce its China-based supply chain exposure from 16% to the high single digits by year-end. Nike trades at approximately $72 per share, reflecting a significant premium to historical earnings valuations.
