NIKE, Inc. Reports Fiscal 2026 First Quarter Results

*

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

1

%

Cost of sales

6,777

6,332

7

%

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

0

%

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

23

(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,

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

4

%

Inventories

8,114

8,253

-2

%

Prepaid expenses and other current assets

2,247

1,729

30

%

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

259

0

%

Goodwill

240

240

0

%

Deferred income taxes and other assets

5,349

4,588

17

%

TOTAL ASSETS

$

37,334

$

37,867

-1

%

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt

$

—

$

1,000

-100

%

Notes payable

4

12

-67

%

Accounts payable

3,772

3,357

12

%

Current portion of operating lease liabilities

506

491

3

%

Accrued liabilities

5,923

5,075

17

%

Income taxes payable

706

693

2

%

Total current liabilities

10,911

10,628

3

%

Long-term debt

7,996

7,998

0

%

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 Changes¹

THREE MONTHS ENDED

%

(Dollars in millions)

8/31/2025

8/31/2024

Change

North America

Footwear

$

3,219

$

3,212

0

%

0

%

Apparel

1,474

1,331

11

%

11

%

Equipment

327

283

16

%

16

%

Total

5,020

4,826

4

%

4

%

Europe, Middle East & Africa

Footwear

2,021

1,952

4

%

-2

%

Apparel

1,106

993

11

%

6

%

Equipment

204

198

3

%

-2

%

Total

3,331

3,143

6

%

1

%

Greater China

Footwear

1,109

1,246

-11

%

-12

%

Apparel

362

360

1

%

0

%

Equipment

41

60

-32

%

-33

%

Total

1,512

1,666

-9

%

-10

%

Asia Pacific & Latin America

Footwear

1,061

1,052

1

%

0

%

Apparel

371

348

7

%

5

%

Equipment

58

62

-6

%

-7

%

Total

1,490

1,462

2

%

1

%

Global Brand Divisions²

9

14

-36

%

-39

%

TOTAL NIKE BRAND

11,362

11,111

2

%

0

%

Converse

366

501

-27

%

-28

%

Corporate³

(8

)

(23

)

—

—

TOTAL NIKE, INC. REVENUES

$

11,720

$

11,589

1

%

-1

%

TOTAL NIKE BRAND

Footwear

$

7,410

$

7,462

-1

%

-2

%

Apparel

3,313

3,032

9

%

7

%

Equipment

630

603

4

%

3

%

Global Brand Divisions²

9

14

-36

%

-39

%

TOTAL NIKE BRAND REVENUES

$

11,362

$

11,111

2

%

0

%

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 TAXES¹

(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 Divisions²

(1,192

)

(1,227

)

3

%

TOTAL NIKE BRAND¹

1,404

1,685

-17

%

Converse

39

121

-68

%

Corporate³

(539

)

(542

)

1

%

TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES¹

904

1,264

-28

%

EBIT margin¹

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.