Nike Inc. has reported its earnings for the second quarter of 2025, revealing a net income decrease of 30% to $1.5 billion, a decline attributed to increased competition and global supply chain challenges. The company’s revenue fell by 15% year-over-year to $11.6 billion as discounts during the holiday season did not meet expectations. In a statement, CEO John Donahoe emphasized the need for a turnaround, stating, “We are committed to reinvigorating our brand and effectively responding to consumer demands.” As part of the strategy, Nike plans to implement tactical discounts while enhancing its direct-to-consumer initiatives. The company’s gross margin also shrank to 43% from 46% a year earlier, with CFO Matt Friend indicating, “Our margins are under pressure, but we are confident in our path forward.” Analysts, however, expressed cautious optimism, suggesting that further engagement with digital platforms could lead to sustained recovery. This announcement led to a 5% drop in Nike’s stock prices, reflecting investors’ uncertainty regarding the company’s ability to navigate the current retail landscape. On a positive note, the brand’s Jordan line continues to perform well despite overall challenges, reinforcing that some segments still hold strong potential for growth. With competition from brands like Adidas intensifying, the company faces significant hurdles moving forward.
Nike Reports Q2 2025 Earnings Amid Turnaround Strategy
