NIKE, Inc. stock research
FY2025 Q1
NIKE (NKE) Gross Margin — Quarter Ended Aug 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved relative to both periods, indicating that the reduction in cost of revenue outpaced the decline in revenue.
Gross margin takeaway
Quarter ended Aug 31, 2024 · FY2025 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved relative to both periods, indicating that the reduction in cost of revenue outpaced the decline in revenue.
- The improvement in gross margin was driven by a proportionally larger decrease in cost of revenue relative to revenue. This relationship is the strongest observable factor in the margin change.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Versus the same quarter one year earlier, revenue and gross profit were also lower, while gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.4%
Gross profit
$5.3B
Revenue
$11.6B
Cost of revenue
$6.3B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+1.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Nov 30, 2023 | $13.4B | $6.0B | $7.4B | 44.6% |
| Feb 29, 2024 | $12.4B | $5.6B | $6.9B | 44.8% |
| May 31, 2024 | $12.6B | $5.6B | $7.0B | 44.7% |
| Aug 31, 2024 | $11.6B | $5.3B | $6.3B | 45.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2024
+0.7 pts
Year-over-year change
Aug 31, 2023
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by a proportionally larger decrease in cost of revenue relative to revenue. This relationship is the strongest observable factor in the margin change.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Versus the same quarter one year earlier, revenue and gross profit were also lower, while gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement can be sustained.