Nike Q1 revenues rise but profit dips 31%
Looking ahead, the group expects its Q2 revenues to be down low-single-digits, including one point of benefit from foreign exchange
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Nike has reported a 1% increase in revenues to $11.7bn (£8.68bn) for the three months to 31 August 2025, though profits fell sharply as margins came under pressure.
Net profit for the quarter dropped 31% year-on-year to $727m (£539.7m), while gross margin declined 320 basis points to 42.2%. The company cited lower average selling prices from higher discounting, a shift in sales channels, and increased tariffs in North America.
On a currency-neutral basis, revenues slipped 1%. Sales for the Nike brand were up 2% to $11.4bn (£8.46bn), flat in constant currency, with growth in North America offset by weaker performance in Greater China.
Direct-to-consumer revenues fell 4% to $4.5bn (£3.34bn), or 5% on a currency-neutral basis. Wholesale sales rose 7% to $6.8bn (£5.05bn), or 5% in constant currency.
By region, North America led with a 4% rise to $5.02bn (£3.73bn), while Europe, the Middle East and Africa recorded a 1% increase to $3.33bn (£2.47bn). Asia Pacific and Latin America were also up 1% at $1.49bn (£1.11bn). Greater China saw revenues fall 10% to $1.51bn (£1.12bn).
Nike warned that its annualised incremental costs are now expected to reach $1.5bn (£1.11bn), up from $1bn (£740m) three months ago, due to new US tariffs.
Looking ahead, the group expects its Q2 revenues to be down low-single-digits, including one point of benefit from foreign exchange.
It also expects Q2 gross margins to be down approximately 300 to 375 basis points, including a net headwind of 175 basis points from the new incremental tariffs.
Elliott Hill, president and chief executive of Nike, said: This quarter Nike drove progress through our Win Now actions in our priority areas of North America, Wholesale, and Running.
“While we’re getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment. I’m confident that we have the right focus in Win Now and that our new alignment in the Sport Offense will be the key to maximizing Nike, Inc.’s complete portfolio over the long-term.”
Matthew Friend, executive vice president and chief financial officer, added: “I’m encouraged by the momentum we generated in the quarter, but progress will not be linear as dimensions of our business recover on different timelines.”
