Nike Inc (NKE)
Pretax margin
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,885,000 | 5,293,000 | 5,853,000 | 6,359,000 | 6,700,000 | 6,220,000 | 6,293,000 | 6,021,000 | 6,201,000 | 6,329,000 | 6,522,000 | 6,373,000 | 6,651,000 | 7,131,000 | 7,097,000 | 7,052,000 | 6,661,000 | 4,003,000 | 3,248,000 | 3,041,000 |
| Revenue (ttm) | US$ in thousands | 46,309,000 | 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 |
| Pretax margin | 8.39% | 11.07% | 11.95% | 12.71% | 13.04% | 12.06% | 12.21% | 11.70% | 12.11% | 12.50% | 13.28% | 13.52% | 14.24% | 15.23% | 15.33% | 15.27% | 14.96% | 10.40% | 8.49% | 8.14% |
May 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,885,000K ÷ $46,309,000K
= 8.39%
The pretax margin of Nike Inc. has exhibited notable fluctuations over the analyzed period from August 2020 through May 2025. Initially, in August 2020, the pretax margin stood at approximately 8.14%, indicating relatively lower profitability prior to the impacts of the COVID-19 pandemic. Moving into November 2020, the margin modestly increased to 8.49%, reflecting a slight improvement in pre-tax profitability.
A significant upward trend commenced by February 2021, when the pretax margin rose to approximately 10.40%, followed by a substantial increase reaching nearly 14.96% in May 2021. This period marks a notable improvement in profitability, likely attributable to the company's operational efficiencies and recovery from pandemic-induced disruptions.
Throughout the subsequent year, the pretax margin remained relatively stable at elevated levels, peaking around August 2021 at approximately 15.27%, and maintaining around 15.33% in November 2021. These figures indicate a period of strong pre-tax profitability.
From early 2022 onward, a gradual decline in pretax margin is observed, dropping to approximately 14.24% in May 2022, then further decreasing to about 13.52% in August 2022 and 13.28% in November 2022. This downward trend persisted into early 2023, with the margin reaching approximately 12.50% in February 2023 and further declining to 12.11% in May 2023.
In the most recent periods, the pretax margin shows some fluctuation but remains lower than the peak levels observed in 2021. It stands at approximately 11.70% in August 2023, slightly rising to 12.21% in November 2023, then marginally decreasing to 12.06% in February 2024. An uptick is noted in May 2024 to about 13.04%, followed by a slight decline to 12.71% in August 2024 and a decrease to approximately 11.95% in November 2024. The margin continues to fluctuate, reaching around 11.07% in February 2025, and then showing a sharp decline to 8.39% in May 2025.
Overall, the pretax margin experienced significant growth from 2020 to mid-2021, reflecting improved profitability, but thereafter gradually trended downward with intermittent fluctuations. The recent decline to near 8.39% in May 2025 indicates pressures on pre-tax profitability, which could be attributed to factors such as increased costs, competitive pressures, or other operational challenges.
Peer comparison
May 31, 2025