Nike closes the third quarter of 2025 with substantially stable revenuesBut with profits in sharp decline and prospects that have frozen the market. The Beaverton group closed the period ended in February with sales of almost 11,3 billion dollars, in line with the previous year, while thenet profit stopped at 520 million dollarsin 35% decreaseHowever, the main factor that triggered the stock's sell-off (-9,4% in after-hours trading) was the weaker-than-expected guidance for the coming months.
Nike: Quarterly results hold up, but margins are thinning
At a superficial glance, the Nike's accounts appear to be holding up. The turnover remains stable and moves in line with the consensus, but the quality of the performance appears more fragile. The gross margin fell by 130 basis points to 40,2%, weighed down in particular by theimpact of tariffs in North America, while diluted earnings per share stood at $0,35.
Two different business speeds also emerge within the numbers. wholesale revenue rose 5% to $6,5 billion, signaling a recovery in the wholesale channel, while direct sales have decreased by 4% to 4,5 billion.
Nike, in short, is showing signs of commercial resilience, but continues to suffer from an incomplete transition and clear pressure on profitability.
China slows, North America holds firm
La geography of results shows a Nike split in two. On one side the North America, which continues to represent the main barrier to global weakness and in the quarter recorded a progression of 9%. On the other hand the China, increasingly problematic, with sales in sharp decline and a forecast contraction of around 20% in the current quarter.
Further complicating the picture are the critical issues in Europe and the Middle East, amid high inventory levels and the potential impact of geopolitical tensions and disruptions to trade. The sportswear division also continues to show weakness, amid high discounts and double-digit declines, precisely in a segment Nike considers crucial to returning to sustained growth.
2026 guidance disappoints and the market presents the bill
Il the real critical point came with the outlookFor the current quarter the group expects a revenue decline between 2% and 4%, while a low single-digit decline is expected until the end of the 2026 financial year. A picture weaker than analysts' expectations, who were betting on a quicker recovery.
And the market, faced with this weak guidance, left no room for manoeuvre. After the results were released, the The stock fell more than 9% in after-hours trading and more than 10% in pre-market trading on Wall Street..
The CEO Elliot Hill admitted that the reconstruction will take longer than expected“This is a complex job, and some components are taking longer than expected,” he explained during the conference call.
Management insists that the the direction remains the right one“This quarter, we took significant actions to improve the health and quality of our business,” Hill said, adding that “the work is not done, but the direction is clear“The CEO also reiterated that the teams are proceeding “with focus and urgency” and that the group’s foundations are strengthening.
The message, however, is not yet enough to dispel the market's doubts. Nike continues to defend its revenue and maintains a solid shareholder compensation policy, with 24 consecutive years of dividend increases and approximately $609 million distributed in the quarter. However, the key issue remains its ability to transform the restructuring into profitable growth. The recovery is underway, but it is slow. And Wall Street, at least for now, is no longer willing to wait on confidence.
