NIKE Inc.
NKEBusiness Overview
ticker: NKE step: 01 generated: 2026-05-12 source: quick-research
NIKE, Inc. (NKE) — Business Overview
Business Description
Nike is the world's largest athletic footwear + apparel brand, with three main reportable brands: NIKE Brand (footwear + apparel + equipment), Jordan Brand (basketball lifestyle), and Converse (Chuck Taylor + lifestyle). The company is mid-turnaround under CEO Elliott Hill (32-year Nike veteran who returned from retirement October 2024). FY25 revenue declined 9.8% to $46.3B as Nike absorbed the cost of resetting wholesale partnerships, restructuring product portfolio, and pivoting back to sports-category organization (vs. former gender/lifestyle alignment that under-served core running + basketball). The competitive challenge is significant: On, Hoka, New Balance, Lululemon, and Skims all gained share during Nike's 2022–24 strategic missteps. Hill's "Win Now" turnaround plan focuses on culture, product, marketing, marketplace, and in-person experiences.
Revenue Model
Three reportable brand segments:
- NIKE Brand (
$44.7B FY25, 96% of revenue) — Footwear ($28B), apparel ($14B), equipment ($2B); split across men's, women's, kids, and sport categories (running, basketball, soccer, training, lifestyle, etc.). - Jordan Brand (~$3–4B; -16% YoY in FY25) — Basketball + lifestyle; standalone brand identity.
- Converse (~$1.7B; -19% YoY) — Chuck Taylor + lifestyle.
Plus Global Brand Divisions and corporate eliminations.
Geographic mix:
- North America (~$22B, ~47%) — largest market; recovering.
- Europe, Middle East, Africa (EMEA) (~$12B, ~26%) — also recovering.
- Greater China (~$6B, ~13%) — most challenged geography.
- Asia Pacific & Latin America (APLA) (~$6B, ~13%).
Distribution mix in FY25: Wholesale 58%, NIKE Direct 42%. Under Hill, Nike is reverting from prior "Direct-only" focus back to balanced omnichannel.
Products & Services
- Nike Brand Performance: Pegasus, Vomero, Structure, Free, ZoomX/Alphafly (running), LeBron/KD/Giannis/Kobe lifestyle (basketball), Mercurial (soccer), Court (tennis).
- Jordan: Air Jordan 1 through 38; lifestyle + court basketball.
- Converse: Chuck Taylor All Star, One Star, Run Star Hike.
- Apparel: Dri-FIT, Nike Pro, Therma-FIT, NikeLab.
- Equipment: Backpacks, balls, training gear.
- Direct Channels: Nike.com, Nike App, SNKRS App; ~1,000+ Nike stores worldwide.
- Innovation: ReactX foam, ZoomX foam, Alphafly carbon plate running shoes (Olympics + marathon dominance).
Customer Base & Go-to-Market
- Athletes + sports enthusiasts: Core demographic 18-44; aspirational reach to teens + younger millennials.
- Lifestyle consumers: Streetwear + fashion-driven purchases (Jordan + Air Force 1 lifestyle franchise).
- Wholesale customers: Foot Locker, Dick's Sporting Goods, JD Sports, Famous Footwear, department stores, Costco. Rebuilding all relationships after 2022–24 Direct-focus push.
- Direct customers: Nike.com, Nike App, SNKRS, Nike Live stores.
Geographic + demographic: North America + EMEA mature markets; Greater China + APLA growth markets.
Competitive Position
Nike still has the largest brand + financial scale in athletic, but lost meaningful share during 2022–24:
| Competitor | Threat | Status |
|---|---|---|
| Adidas | Direct competitor #2 in athletic | Recovering with Samba/Gazelle lifestyle |
| On Holding | Premium running disruptor | +25%+ growth on Cloudmonster/Cloud 5/Mover wellness |
| Hoka (Deckers) | Maximalist running disruptor | +30%+ growth; clean cushioning narrative |
| New Balance | Lifestyle + running comeback | +30%+ growth; 990v6 + 530 lifestyle |
| Lululemon | Athleisure leader | Premium athleisure share gain |
| Skims | Premium loungewear/athleisure | New entrant taking share |
Structural strengths:
- Largest scale + best margins — Even at depressed FY25 levels, Nike's $46B revenue + ~10% operating margin dwarfs peers.
- Brand equity + storytelling capability — Olympics + Air Jordan Brand + global athlete partnerships unmatched.
- Innovation pipeline rebuilding — ZoomX/Alphafly running + Vomero/Pegasus refreshes; Structure Plus targeting Hoka's "maximalist" share.
- Wholesale partner relationships rebuilding — Foot Locker, Dick's, JD Sports cheering Hill's omnichannel pivot.
- Direct channel + 400M+ Nike App users — Direct-to-consumer infrastructure even after volume reset.
Active challenges:
- Running category share loss to On + Hoka has been the most damaging structural trend.
- Greater China weakness (geopolitical + nationalism + consumer slowdown).
- Inventory rebalancing taking 2-3 quarters; ongoing markdown pressure.
- Streetwear/lifestyle fatigue with Jordan 1 / Air Force 1.
Key Facts
- Founded: 1964 (as Blue Ribbon Sports)
- Headquarters: Beaverton, Oregon
- Employees: ~80,000
- Exchange: NYSE
- Sector / Industry: Consumer Discretionary / Footwear
- Market Cap: ~$100B
- FY2024 Revenue: $51.4B
- FY2025 Revenue: $46.3B (-9.8%)
- Q2 FY26 Revenue: $12.4B (+1%); first turn to positive growth
- Wholesale Mix FY25: 58% (rising)
- NIKE Direct Mix FY25: 42%
- CEO: Elliott Hill (since October 2024; 32-year Nike veteran)
- Dividend Yield: ~2.5%
- Fiscal Year Ends: Late May (FY25 = ~May 2025)
- Major Recent M&A: Mostly organic; minor RFID partnership investments
Financial Snapshot
ticker: NKE step: 04 generated: 2026-05-12 source: quick-research
NIKE, Inc. (NKE) — Financial Snapshot
(Nike's fiscal year ends in late May; FY2025 ended May 31, 2025; FY2026 = year ending ~May 2026.)
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|---|---|---|---|---|
| Revenue | $51.2B | $51.4B | $46.3B | -10% |
| Gross Margin | 44.1% | 44.6% | ~42% | -260 bps |
| Operating Margin | 13.0% | 12.4% | ~9% | -340 bps |
| Net Income | $5.07B | $5.70B | ~$3.2B | -44% |
| Diluted EPS | $3.23 | $3.73 | ~$2.10 | -44% |
Q2 FY2026 Results (Quarter Ended November 30, 2025)
| Metric | Q2 FY26 |
|---|---|
| Revenue | $12.4B (+1% reported; flat currency-neutral) |
| Gross Margin | 40.6% (-300 bps YoY) |
| Diluted EPS | $0.53 |
| Wholesale Channel | +8% YoY |
| Nike Direct Channel | -8% YoY |
| Converse | -30% YoY |
| Net Income | $0.8B (-32% YoY) |
Cash Flow & Capital Allocation (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$7B |
| Capital Expenditures | ~$1B |
| Free Cash Flow | ~$6B |
| Capital Returned to Shareholders | $5.3B (FY25) |
| Dividends Paid | $2.3B (+6% YoY) |
| Share Repurchases | ~$3.0B |
| Quarterly Dividend | $0.41 |
| Annual Dividend | $1.64 |
| Dividend Yield | ~2.5% |
| 23 Consecutive Years of Dividend Increases | confirmed |
| Cash & Marketable Securities | ~$10B |
| Total Debt | ~$12B |
Key Ratios (approximate)
- P/E: ~32x (FY26E EPS ~$2.10–2.40) | EV/EBITDA: ~17x | FCF Yield: ~6%
- Revenue Growth (FY25): -10% (turnaround year); Q2 FY26: +1%
- Gross Margin: 42% (FY25); contracted from 44–45% historical
- Operating Margin: ~9% (FY25); contracted from 12–15% historical
- Dividend Yield: ~2.5% | 23 consecutive years dividend increases
- Net Debt: small (~$2B)
Turnaround Trajectory
FY25 was the rebase year under new CEO Elliott Hill (took over October 2024):
- Revenue down -10% as Nike reset wholesale + product portfolio
- Gross margin compressed 260 bps on markdowns + clearance
- Operating margin compressed 340 bps
- Net income halved
- Q2 FY26 ($12.4B, +1% revenue) confirms inflection back to positive growth
- Wholesale recovering +8%; Direct still declining -8%
- Running category +20%+ for two consecutive quarters
The "Win Now" turnaround plan focuses on five pillars (culture, product, marketing, marketplace, in-person experiences). Hill is rebuilding wholesale partnerships, refocusing on sports categories vs. gender-segmented organization, and rebuilding innovation cadence.
FY2026 Guidance
Nike has been cautious on full-year guidance — Q3 FY26 expectations: gross margin expansion expected to begin Q2 FY27 as tariff impacts subside. Full year + long-term guidance deferred to Investor Day in fall 2026.
Forward Estimates
FY2026 Consensus (Jun 2025 – May 2026):
- Revenue: ~$46–48B (flat to slight growth)
- Adjusted EPS: ~$2.00–2.40
- Gross Margin: 41–42% (rebuilding)
Bull case: Running category share recovery vs. On + Hoka; wholesale rebuild drives unit volumes; Vomero 18 + Pegasus Premium + Structure Plus innovation resonates; gross margin recovers to 44%+ by FY27; EPS reaches $3.50+ by FY27; multiple expands to 25x P/E. Bear case: Greater China continues to deteriorate; On + Hoka share gains accelerate; Jordan/Lifestyle saturation continues; FY27 EPS stuck at $2.50; multiple compresses. Consensus targets ~$75–85 vs. trading ~$60–70 (~10–30% implied upside).
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $NKE.