Nike Inc. (NKE) reported its fiscal third-quarter results on March 20, 2025, revealing a 9% year-over-year decline in revenue to $11.27 billion. Earnings for the quarter fell to $794 million, or 54 cents per share, surpassing Wall Street’s expectations but marking a decrease from the previous year’s $1.17 billion, or 77 cents per share.
Despite the earnings beat, Nike’s stock dropped 5% in after-hours trading following the company’s cautionary outlook for the upcoming quarter. Chief Financial Officer Matt Friend projected that fiscal fourth-quarter sales could decline by a percentage in the low end of the “mid-teens range” compared to the same period last year, slightly more pessimistic than the 12% decline anticipated by analysts. Friend attributed this forecast to several external factors, including geopolitical dynamics, new tariffs, volatile foreign exchange rates, and tax regulations, all contributing to uncertainty in the current operating environment.
Under the leadership of new CEO Elliott Hill, who took over in October, Nike is undergoing a turnaround plan aimed at revitalizing the brand. Analysts from JPMorgan noted that this recovery effort is expected to “take time,” with significant improvements anticipated by the back half of fiscal 2026. They adjusted their price target for Nike’s stock to $64 from $73, reflecting a cautious outlook on the company’s near-term performance
In the third quarter, Nike’s inventories stood at $7.5 billion, down 2% compared to the prior year, reflecting product mix shifts partially offset by an increase in units. Cash and equivalents and short-term investments were $10.4 billion, a slight decrease from last year, as cash generated by operations was more than offset by share repurchases, cash dividends, and capital expenditures. The company returned approximately $1.1 billion to shareholders during the quarter, including $594 million in dividends and $499 million in share repurchases.
Looking ahead, Nike plans to focus on serving athletes with new product innovations and reigniting brand momentum. The company acknowledges the challenges posed by external factors but remains committed to its long-term growth strategy.
