Nike Inc (NKE)
Gross profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 19,790,000 | 22,887,000 | 22,292,000 | 21,479,000 | 19,962,000 |
| Revenue | US$ in thousands | 46,309,000 | 51,362,000 | 51,217,000 | 46,710,000 | 44,538,000 |
| Gross profit margin | 42.73% | 44.56% | 43.52% | 45.98% | 44.82% |
May 31, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $19,790,000K ÷ $46,309,000K
= 42.73%
The gross profit margin of Nike Inc. has exhibited fluctuations over the analyzed period from May 31, 2021, to May 31, 2025. At the end of the fiscal year 2021, the gross profit margin stood at 44.82%, reflecting the company's ability to retain nearly 45 cents of gross profit for every dollar of revenue generated. In the subsequent fiscal year 2022, this margin increased to 45.98%, indicating an improvement in profitability and possibly more efficient cost management or favorable product mix.
However, in the fiscal year ending May 31, 2023, the gross profit margin experienced a decline to 43.52%. This decrease suggests that Nike faced challenges affecting either higher cost of goods sold (COGS) or a reduction in selling prices, which impacted overall gross profit profitability. Despite this decline, the margin recovered somewhat in the fiscal year 2024, rising to 44.56%, approaching levels observed in prior years and signaling some stabilization or improvement in operational efficiencies or pricing strategies.
Nevertheless, the margin declined again in the fiscal year 2025, reaching 42.73%. This reduction indicates a continued pressure on gross profitability, potentially due to increased costs, competitive pricing pressures, or shifts in product or geographic sales mix unfavorable to the company's margins.
Overall, Nike’s gross profit margin demonstrates modest fluctuations over the observed period, with a general trend that does not indicate a significant or sustained improvement. The margins remain within a relatively narrow band, reflecting consistent underlying profitability, but also suggest that the company has faced periodic challenges impacting gross margins.
Peer comparison
May 31, 2025