Nike Inc (NKE)
Operating profit margin
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 4,966,000 | 5,514,000 | 5,955,000 | 6,350,000 | 5,750,000 | 5,682,000 | 5,444,000 | 5,375,000 | 5,562,000 | 5,740,000 | 5,654,000 | 6,225,000 | 6,966,000 | 7,156,000 | 7,235,000 | 6,844,000 | 4,127,000 | 3,372,000 | 3,012,000 | 2,858,000 |
| Revenue (ttm) | US$ in thousands | 47,818,000 | 48,978,000 | 50,012,000 | 51,362,000 | 51,581,000 | 51,542,000 | 51,469,000 | 51,217,000 | 50,626,000 | 49,107,000 | 47,149,000 | 46,710,000 | 46,820,000 | 46,306,000 | 46,192,000 | 44,538,000 | 38,507,000 | 38,254,000 | 37,337,000 | 37,403,000 |
| Operating profit margin | 10.39% | 11.26% | 11.91% | 12.36% | 11.15% | 11.02% | 10.58% | 10.49% | 10.99% | 11.69% | 11.99% | 13.33% | 14.88% | 15.45% | 15.66% | 15.37% | 10.72% | 8.81% | 8.07% | 7.64% |
February 28, 2025 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $4,966,000K ÷ $47,818,000K
= 10.39%
The operating profit margin of Nike Inc. demonstrated notable fluctuations over the period from May 2020 through February 2025. Starting at 7.64% on May 31, 2020, the margin experienced a steady increase, reaching a peak of approximately 15.66% on August 31, 2021. This upward trend reflects an improvement in operational efficiency and profitability during this period, potentially driven by favorable sales performance, cost management, or a combination of both.
Following this peak, the operating profit margin declined gradually, falling to around 13.33% by May 2022, and continued to trend downward, reaching a low of approximately 10.39% on February 28, 2025. The decline suggests increasing operational challenges, pressure on profit margins, or changes in sales mix post-2021.
In recent periods, from late 2023 onward, the margin has shown signs of stabilization and slight recovery, fluctuating between approximately 10.5% and 12.36%. The margin of 12.36% as of May 2024 indicates some resurgence in profitability, whereas the subsequent slight decrease to about 10.39% in February 2025 underscores ongoing variability in operational performance.
Overall, the data indicate that Nike's operating profit margin experienced a significant upward trajectory during the initial recovery phase past mid-2020, followed by a gradual decline and subsequent stabilization. These shifts may reflect the company's response to external economic factors, strategic adjustments, and market dynamics affecting operational efficiency over the observed period.
Peer comparison
Feb 28, 2025