Nike Inc (NKE)
Operating profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,702,000 | 6,690,000 | 5,056,000 | 5,835,000 | 6,140,000 |
| Revenue | US$ in thousands | 46,309,000 | 51,362,000 | 51,217,000 | 46,710,000 | 44,538,000 |
| Operating profit margin | 7.99% | 13.03% | 9.87% | 12.49% | 13.79% |
May 31, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,702,000K ÷ $46,309,000K
= 7.99%
The operating profit margin of Nike Inc. has exhibited variability over the period from May 31, 2021, to May 31, 2025. Specifically, the margin was 13.79% as of May 31, 2021, indicating a healthy proportion of operating income to net sales. This margin decreased slightly to 12.49% by May 31, 2022, reflecting a modest compression in operational efficiency or increased costs that impacted profitability at the operating level.
A more pronounced decline is observed by May 31, 2023, when the operating profit margin fell to 9.87%, suggesting a substantial reduction in operating profitability which could be attributable to factors such as rising expense levels, increased competitive pressures, or strategic investments impacting short-term margins. However, a partial recovery is evident by May 31, 2024, with the margin increasing to 13.03%, indicating an improvement in operational efficiency or effective cost management that restored profitability levels close to the previous year's figures.
Despite this recovery, the margin experienced a significant decline again by May 31, 2025, reaching 7.99%. This downward trend signals a notable deterioration in Nike’s operational profitability, potentially driven by increased costs, pricing pressures, or other operational challenges.
Overall, the data reflects a period of volatility in Nike’s operating profit margin. The fluctuations suggest that while there have been periods of recovery, the long-term trend indicates challenges in maintaining consistent operational efficiency, emphasizing the importance of strategic cost management and revenue growth initiatives to stabilize margins in the future.
Peer comparison
May 31, 2025