After having reached an all-time high in its fiscal 2024, Nike Inc. revenue plummeted in its fiscal Q1 2025, which ended Aug. 31.
Total Nike revenue in Q1 fell to $11.59 billion. That’s down 10% year over year from $12.94 billion. Meanwhile, Nike Digital sales fell at twice that rate — 20%. Q1 also marks the third straight quarter of declining Nike Digital sales. Net income also declined 28%, to $1.1 billion, in the quarter.
The $11.59 billion in quarterly revenue is Nike’s lowest since Q3 of its fiscal ’22, which ended Feb. 28, 2022. The retailer had generated $10.87 billion that quarter. In February this year, Nike said it planned to cut about 2% of its total workforce, or more than 1,600 people.
Nike is No. 9 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by their annual web sales. In the database, Nike is the highest-ranking Apparel & Accessories retailer.
Nike Digital sales continue falling in Q1
Nike Digital encompasses global sales through the retailer’s website and mobile app. The 20% drop in Q1 comes after Nike Digital sales had already decreased 10% in Q4 and 4% in Q3.
Prior to that, Nike had reached its highest-ever quarterly revenue in its Q2 of its fiscal 2024. Meanwhile, Nike Digital sales had grown 4% in the quarter despite declining web traffic.
Also in Q1, Nike Direct revenue fell 13% year over year, to $4.7 billion. Nike Direct refers to the retailer’s direct-to-consumer sales, both in physical stores and online. On the opposite end, Nike wholesale revenue also decreased, falling 8% year over year, to $6.4 billion, in Q1.
High-level changes at Nike
In September, Nike announced its replacement of John Donahoe, who became president and CEO in 2020. The company’s board has selected Elliott Hill as its new CEO. Hill left Nike in 2020 after a three-decade career that began with an internship. His time there aligned with the rise of some of Nike’s most popular sneaker lines. His most recent role was as president of consumer and marketplace. Hill begins his role as president and CEO on Oct. 14.
Neither Donahoe nor Hill were on the Nike Q1 earnings call with investors.
Chief financial officer Matthew Friend told investors on the company’s Q1 earnings call that Nike is “withdrawing” its full-year financial guidance. He cited the CEO transition and having three quarters left in the fiscal year. The company intends to provide guidance for the remaining fiscal quarters, and it is postponing its investor day, Friend told investors. He did say, though, that the company expects Nike Digital sales to decline double-digits in fiscal ’25.
“Nike’s first-quarter results largely met our expectations set last quarter,” Friend said. “We are moving aggressively to shift our product portfolio, create better balance in our business, and reenergize brand momentum through sport. That said, a comeback at this scale takes time.”
However, he noted, while Q1 revenue fell in line with the company’s plan at the start of the quarter, it delivered lower unit sales than Nike expected. He added that Nike expects Q2 revenue to decrease 8% to 10% year over year.
Comeback strategy after Nike sales declines
Friend said Nike intends to start its “comeback ” by focusing on its running footwear. It also will focus on innovation, he said. Q1 revenue from new footwear products increased “strong double-digits” compared to the prior year, he said.
“We have been intentionally reducing the proportion of our business driven by our classic footwear franchises, Air Force 1, Air Jordan 1, and Dunk,” Friend said. “And as expected, Nike revenue in Q1 from these franchises decelerated, declining more than the total business, as we tighten marketplace supply.”
Breaking down Nike revenue in Q1
In North America, specifically, Nike Q1 revenue fell across the board. Total revenue for the quarter decreased 11%. Nike Direct fell 11%, Nike Digital sales declined 15%, physical-store sales 1%, and wholesale 11%.
In Europe, the Middle East and Africa, Nike revenue decreased 12% year over year in Q1. Also in the region, Nike Direct and Nike Digital sales declined 12% and 24%, respectively. Wholesale also fell 11%, while Nike physical-store sales increased 3%.
In Asia-Pacific and Latin America, Nike revenue decreased 2% year over year in Q1. Similar to in EMEA, wholesale, Nike Direct, and Nike Digital sales all decreased (9%, 4% and 15%). Also similar to in EMEA, physical-store sales increased, up 9%.
In Greater China, sales revenue was down in all segments but wholesale. Total revenue for the region decreased 3%, as Direct declined 16%, Digital fell 34%, and physical-store sales dropped 4%. Wholesale in Greater China grew 10%.
Converse-brand revenue fell 15% to $501 million in Q1. That’s down from $588 million the prior year.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Nike report.
Do you rank in our databases?
Submit your data and we’ll see where you fit in our next ranking update.
Sign up
Stay on top of the latest developments in the online retail industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.
link