NIKE, Inc. stock research
FY2025 Q3
NIKE (NKE) Gross Margin — Quarter Ended Feb 28, 2025
Revenue declined while cost of revenue also decreased, but gross profit fell more sharply, causing gross margin to contract. Compared with the prior quarter and the same quarter last year, gross margin weakened.
Gross margin takeaway
Quarter ended Feb 28, 2025 · FY2025 Q3
Revenue declined while cost of revenue also decreased, but gross profit fell more sharply, causing gross margin to contract. Compared with the prior quarter and the same quarter last year, gross margin weakened.
- The filing context indicates that lower sales and an increase in inventory units were partially offset by lower product costs and shifts in product mix. These factors collectively influenced gross margin.
- Sequentially, gross margin decreased from the prior quarter. Year-over-year, gross margin also declined from the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.5%
Gross profit
$4.7B
Revenue
$11.3B
Cost of revenue
$6.6B
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-3.3 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 |
|---|---|---|---|---|
| May 31, 2024 | $12.6B | $5.6B | $7.0B | 44.7% |
| Aug 31, 2024 | $11.6B | $5.3B | $6.3B | 45.4% |
| Nov 30, 2024 | $12.4B | $5.4B | $7.0B | 43.6% |
| Feb 28, 2025 | $11.3B | $4.7B | $6.6B | 41.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2024
-2.1 pts
Year-over-year change
Feb 29, 2024
-3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The filing context indicates that lower sales and an increase in inventory units were partially offset by lower product costs and shifts in product mix. These factors collectively influenced gross margin.
Sequentially, gross margin decreased from the prior quarter. Year-over-year, gross margin also declined from the same quarter one year earlier.
Monitor inventory unit levels and product cost trends as they directly affect gross margin.