Nike, Inc. announced its financial results for the first quarter of fiscal year 2025, covering the period from 1 June 2024 to 31 August 2024. As the company faces evolving market conditions and prepares for a leadership transition, its Q1 FY25 performance reflects both resilience in gross margins and strategic adjustments in cost management and shareholder returns.
For Q1 FY25, Nike reported revenues of EUR 10,9 billion, reflecting a 10% year-over-year (YoY) decline compared to the same period last year, with currency-neutral revenue also dropping by 9%. Gross margin increased by 120 basis points to 45,4%, a positive outcome due to lower product and logistics costs alongside strategic pricing actions. Diluted earnings per share (EPS) declined by 26% YoY to EUR 0,66, largely due to a 15% rise in demand creation expenses as part of an intensified marketing strategy focused on major sports events.
| Quarterly Financial Comparison |
Q1 FY25 (EUR million) |
Q1 FY24 (EUR million) |
% Growth/Decline |
| Revenue |
10.915 |
12.181 |
-10% |
| Gross Profit |
4.945 |
5.387 |
-8% |
| Gross Margin (%) |
45,4% |
44,2% |
+120 bps |
| Net Income |
988 |
1.363 |
-28% |
| Diluted Earnings per Share (EPS) |
0,66 |
0,89 |
-26% |
Nike reported a revenue decline across all major geographical segments. North America, its largest market, saw an 11% decline, and EMEA revenues decreased by 13%. Greater China and Asia Pacific & Latin America regions experienced smaller declines, at 4% and 7%, respectively, reflecting some stability within emerging markets.
| Geographic Segment |
Q1 FY25 Revenue (EUR million) |
Q1 FY24 Revenue (EUR million) |
% Growth/Decline |
| North America |
4.548 |
5.115 |
-11% |
| Europe, Middle East & Africa (EMEA) |
2.961 |
3.404 |
-13% |
| Greater China |
1.570 |
1.634 |
-4% |
| Asia Pacific & Latin America |
1.378 |
1.482 |
-7% |
| Total Nike, Inc. Revenue |
10.915 |
12.181 |
-10% |
Nike’s commitment to its Move to Zero
initiative remained prominent, aiming for carbon neutrality and zero waste in manufacturing and operations. This quarter, Nike achieved several key milestones, advancing its ESG performance through increased use of sustainable materials and expanded product circularity programmes.
| ESG Performance Indicator |
Q1 FY25 Achievement |
| Use of Recycled Materials |
Increased recycled content in Flyknit and footwear materials |
| Waste Reduction in Manufacturing |
Improved material usage efficiency in footwear production |
| Circularity Programmes Expansion |
Broadened recycling initiatives in key markets |
Outlook and Observations
Nike's first-quarter results reflect the effects of economic headwinds and adjustments in consumer demand, yet the company's strengthened gross margins and commitment to cost management indicate effective resilience strategies. The anticipated CEO transition will likely influence operational approaches, and future performance could benefit from the brand’s focus on digital acceleration, particularly in Greater China and APAC. Further analysis could explore how Nike’s innovation pipeline and enhanced brand positioning might capture market share in these emerging regions, with a keen emphasis on its sustainability agenda.
Read the full Nike Inc. report Here.
Cover Image Courtesy: Nike Website