Nike Inc (NKE)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 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 | 2,887,000 |
| 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 |
| Pretax margin | 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% | 7.72% |
February 28, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $5,293,000K ÷ $47,818,000K
= 11.07%
The pretax margin of Nike Inc. has exhibited notable fluctuations over the observed period. Beginning at 7.72% as of May 2020, the margin experienced a steady increase, reaching a peak of approximately 15.33% in November 2021. This period of expansion indicates an improvement in profitability before taxes, likely reflecting operational efficiencies, effective cost management, or favorable market conditions during that time.
Following this peak, a gradual decline is observed, with the margin decreasing to approximately 11.07% by February 2025. This downward trend suggests increased operating or financing expenses, competitive pressures, or changes in sales mix affecting profitability.
Notably, there are periods of slight recovery, such as from May 2024 (13.04%) to August 2024 (12.71%), and marginal fluctuations thereafter, indicating some stabilization but not returning to the earlier peak levels. Overall, the pretax margin has shown an upward trend during the early part of the period, reaching high single digits to mid-teens, followed by a gradual downward trajectory in subsequent years, reflecting potential challenges in maintaining elevated profitability margins amid changing market dynamics.
Peer comparison
Feb 28, 2025