Nike has reported a nine per cent drop in third-quarter sales for fiscal 2025; total sales amounted to £9.1bn ($11.3bn), down from £10.1bn ($12.4bn) last year.
Industry experts said these latest figures mark a continuation of the sportswear brand’s struggles. The company’s performance was largely driven by a weak performance in its core footwear and apparel segments, which saw a nine per cent and three per cent drop respectively.
In addition, Nike’s global brand divisions, including Converse, also reported a combined 18 per cent drop in sales, as it faces slow consumer demand and declines across key markets.
Regionally, EMEA (Europe, the Middle East, and Africa) was one of the hardest hit, seeing a 10 per cent drop in revenue against the same period last year; of this, the brand’s footwear sales also dropped 11 per cent.
Elsewhere, Greater China’s figures were even steeper, with overall sales falling 17 per cent. The brand said this was due in part to stiff competition from rival brands across the region, particularly in footwear.
This is the first quarter of results under CEO, Elliott Hill, who took over the role in October last year. He said: “Nike is focused on navigating through these turbulent times while looking to restore growth.
“The progress we made against the ‘Win Now’ strategic priorities we committed to 90 days ago reinforces my confidence that we are on the right path.”
Meanwhile, CFO, Matthew Friend, reported that “geopolitical dynamics, new tariffs, volatile foreign exchange rates and tax regulations” are among factors creating uncertainty.
He added that Nike’s gross profit fell 16 per cent to £3.8bn ($4.7bn) in this latest quarter, and its gross margin dropped by 330 basis points to 41.5 per cent.
In recent weeks, the sportswear brand announced a collaboration with Skims – the American shapewear and clothing brand co-founded by Kim Kardashian. The two brands are set to launch their new activewear line, NikeSkims, this Spring.
