Nike, Inc. (NKE) reported its financial results for the third quarter of fiscal 2025, which ended on February 28, 2025, revealing a challenging quarter marked by declining revenues, margin pressure, and softness across key markets.

Total revenues for the quarter came in at $11.3 billion, representing a 9% decrease compared to $12.4 billion in Q3 fiscal 2024. On a currency-neutral basis, revenues fell by 7%, underscoring broad-based weakness across product lines and regions. The NIKE Brand, which accounts for over 90% of total revenues, also saw a 9% decline on a reported basis and a 6% decline on a currency-neutral basis. This drop was largely attributed to softer sales in the Jordan Brand, as well as in Men’s, Kids’, and Women’s categories.

In the product breakdown, footwear revenues decreased 9% reported and 6% currency-neutral, as unit sales fell 8% and average selling prices (ASP) declined, further dragging down overall revenue. On the other hand, apparel revenues bucked the trend, rising 7% on a reported basis and 8% currency-neutral, supported by a 6% increase in unit sales, offering a silver lining amid broader contraction.

Nike’s direct-to-consumer business also faced headwinds. NIKE Direct revenues totaled $4.7 billion, down from $5.4 billion in the prior year. This reflects a 10% decline on a currency-neutral basis, primarily driven by a 15% drop in digital sales, highlighting slowing momentum in one of the company's key strategic channels.

Profitability took a hit as well. Gross margin contracted to 41.5%, down from 44.8% in Q3 2024. This decline was primarily driven by lower average selling prices and higher product costs, pointing to increased markdown activity and inflationary pressures. Net income fell to $794 million, a significant 32% decrease from $1.2 billion a year earlier. This translated into diluted earnings per share (EPS) of $0.54, down from $0.77. Meanwhile, earnings before interest and taxes (EBIT) dropped by 35%, reflecting the dual impact of lower revenues and tightening margins.

Regionally, the company faced challenges across most major markets. In North America, revenues declined by 4% on a currency-neutral basis. Greater China saw a steep decline of 17% on a reported basis, as both wholesale and direct sales fell sharply. The Europe, Middle East & Africa (EMEA) region wasn’t spared either, recording a 10% currency-neutral revenue decline.

Overall, Nike’s Q3 FY25 results reflect a period of broad-based weakness, driven by slowing demand, inventory management actions, and a highly promotional retail environment, particularly in key regions such as Greater China and North America. The company continues to navigate evolving consumer behavior, pricing pressures, and regional volatility as it works to stabilize its performance in the coming quarters.