Nike (F.Y. 2024-2025)
Executive Summary
Nike, Inc. is the world’s largest athletic footwear and apparel company. The company operates brands like Nike, Jordan and converse brands. The company designs, markets, and sells sports footwear, apparel, etc globally through retail stores, digital, and wholesale channels. During 2025, the company will focus on innovation, growth in digital, and customer relations. The company has faced challenges such as heavy competition, change in consumer needs, change in exchange rate, inflation and uncertainty in the economy. The company invests in product development, sustainability, etc. During 2025, the company’s revenue is declining.
Company Overview
Nike, Inc. is a leading global sportswear company in the USA. Nike was established in 1967. The company operates brands like Nike, Jordan and converse brands. The company designs, markets, and sells sports footwear, apparel, etc globally through retail stores, digital, and wholesale channels. The company has a strong international operation. The company focuses on innovation, product quality, digital transformation, consumer needs, and sustainability. The company invests in research and development to create advanced technology for athletics.
Industry Overview
Nike, Inc. is the athletic footwear and apparel industry that is growing globally by increasing health awareness, participation in fitness, sports activity, etc. The company designs, markets, and sells sports footwear, apparel, etc globally through retail stores, digital, and wholesale channels. The company has a strong international operation. The company focuses on innovation, product quality, digital transformation, consumer needs, and sustainability. The company invests in research and development to create advanced technology for athletics.
Financial Performance (for the year ended 31, may) (in millions $)
Particulars | 2025 | 2024 |
Revenue | 46,309 | 51,362 |
Costs of sales | 26,519 | 28,475 |
Gross profit | 19,790 | 22,887 |
Demand creation expenses | 4,689 | 4,285 |
Operating overhead expense | 11,399 | 12,291 |
Total selling and administrative expense | 16,088 | 16,576 |
Interest expense (income), net | (107) | (161) |
Other (income) expense, net | (76) | (228) |
Interest before income taxes | 3,885 | 6,700 |
Income tax expense | 666 | 1,000 |
Net income | 3,219 | 5,700 |
Source: Annual Report of Nike, Inc. 2025
Key Financial Ratio
Particulars | 2025 | 2024 |
Current ratio | 2.72 | 2.51 |
Gross profit ratio | 42.7% | 44.6% |
Net profit ratio | 6.95% | 11.09% |
Return on assets (ROA) | 8.5% | 14.1% |
Return on equity (ROE) | 21.7% | 34.9% |
Debt-to-equity ratio | 1.12 | 1.07 |
Inventory turnover ratio | 3.22 times | 4.07 times |
Asset turnover ratio | 1.22 times | 1.27 times |
Source: Annual Report of Nike, Inc. 2025
SWOT Analysis
Strengths 1.Nike, Inc. is a world’s leading athletic footwear and apparel company. 2.The company has strong global customers. 3. The company has a strong global network. 4.The company has a strong financial position. | Weaknesses 1.The company highly depends on footwear. 2.During 2025, the company’s revenue is declining. 3. The company’s operation can be affected by change in exchange rate. |
Opportunities 1.The company’s demand is growing for sportswear products. 2.The company is expanding its business online. 3.the company’s demand is growing for sustainable and eco-friendly products. | Threats 1.The company has strong competition from other brands. 2. There can be economic slowdown and uncertainty in the market. 3.changing in consumer choice and fashion trends. |
Conclusion
Nike, Inc. is a world’s leading athletic footwear and apparel company. The company operates brands like Nike, Jordan and converse brands. The company designs, markets, and sells sports footwear, apparel, etc globally through retail stores, digital, and wholesale channels. During 2025, the company will focus on innovation, growth in digital, and customer relations. The company has faced challenges such as heavy competition, change in consumer needs, change in exchange rate, inflation and uncertainty in the economy. The company invests in product development, sustainability, etc. During 2025, the company’s revenue is declining. Nike, Inc. is well-established for future growth.