Nike Inc (NKE)
Net profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,219,000 | 5,700,000 | 5,070,000 | 6,046,000 | 5,727,000 |
| Revenue | US$ in thousands | 46,309,000 | 51,362,000 | 51,217,000 | 46,710,000 | 44,538,000 |
| Net profit margin | 6.95% | 11.10% | 9.90% | 12.94% | 12.86% |
May 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $3,219,000K ÷ $46,309,000K
= 6.95%
The net profit margin of Nike Inc. has exhibited notable fluctuations over the specified period from May 31, 2021, to May 31, 2025. At the end of fiscal year 2021, the margin stood at 12.86%, indicating a relatively efficient conversion of revenue into profit. This marginal increase to 12.94% in May 2022 suggests a slight improvement in profitability during that period.
However, a significant decline is observed by May 2023, as the net profit margin drops to 9.90%. This decrease may reflect increased costs, lower gross margins, or other operational challenges faced by the company during this timeframe. The margin experiences a partial recovery in May 2024, rising to 11.10%, but does not return to the levels observed in previous years.
By May 2025, the net profit margin significantly narrows to 6.95%, representing a substantial reduction compared to prior periods. This downward trend indicates a marked decrease in Nike's profitability efficiency, which could be attributed to rising expenses, changes in sales mix, competitive pressures, or macroeconomic factors impacting cost structures and revenue generation.
Overall, the data depict a period of stability followed by a notable decline in net profitability for Nike Inc., highlighting the importance of examining underlying operational and market factors influencing this profitability metric.
Peer comparison
May 31, 2025