Nike Shares Slide Despite Earnings and Revenue Beat as Margins Compress

Font: Financial Modeling Prep  • Dec 19, 2025

Nike (NYSE: NKE) reported fiscal second-quarter results that exceeded analyst expectations on both earnings and revenue, though shares fell more than 9% intra-day on Friday as margin pressure and weakness in China weighed on investor sentiment.

The athletic apparel company posted earnings per share of $0.53 on revenue of $12.43 billion for the quarter. Analysts surveyed by Investing.com had expected earnings of $0.37 per share on revenue of $12.2 billion.

Revenue strength was driven by North America, where sales rose 9% year over year to $5.6 billion. China remained a weak spot, with sales declining 17% to $1.42 billion, missing analyst expectations of $1.6 billion.

Gross margin declined 300 basis points to 40.6%, pressured by increased promotional activity to clear excess inventory, particularly in North America, as well as higher tariffs that raised input costs.