Nike Inc.’s digital sales have continued to sink — along with quarterly and annual revenue — in its fiscal Q4 2025 as the apparel and footwear retailer struggles to execute a turnaround.
In Q4, Nike total quarterly revenue fell to $11.1 billion. That’s down from both Q3 and the prior year’s Q4. It’s also the lowest since Nike’s Q3 of fiscal 2022. Similarly, Nike total annual revenue was its lowest since that year, at $46.31 billion.
“While in line with our expectations, we are not pleased with our financial performance,” chief financial officer Matthew Friend told investors on the retailer’s quarterly earnings call.
Nike revenue declined 12% year over year in its fiscal Q4. Nike Direct, which includes digital and Nike-owned store revenue, decreased 14%. Wholesale revenue also decreased 9%.
As other leading online retailers have noted in earnings calls over the last few months, tariffs remain a challenge for the retailer. Based on current rates, Nike expects tariffs to cost it about $1 billion in its current fiscal year.
“Nike has consistently been a top payer of U.S. duties, with an average duty rate on footwear imported into the United States in the mid-teens range,” Friend said. “Therefore, these tariffs represent a new and meaningful cost headwind, and we are taking actions that balance the consumer, our partners, our Win Now actions as well as the long-term positioning of our brands in the marketplace.”
“Win Now” refers to Nike’s strategy to turn sales around, which CEO Elliott Hill is leading.
Nike is No. 13 in the Top 2000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by their annual ecommerce sales. In the database, Nike is the highest-ranking Apparel & Accessories retailer.
How Nike is addressing tariffs
Friend identified four steps Nike is taking to counteract tariffs’ impacts on its business:
- Optimizing its sourcing mix and allocating production differently across countries.
- Partnering with suppliers and retail partners to mitigate the structural cost increase.
- A “surgical price increase” in the U.S. with phased implementation beginning in the fall.
- Evaluating corporate cost reduction “as appropriate.”
“Despite the current elevated tariffs for Chinese products imported into the United States, manufacturing capacity and capability in China remains important to our global source base,” Friend said.
He added that products Nike sources from China represent about 16% of the footwear it imports into the United States. It expects to reduce that to the high single-digit range by the end of its fiscal 2026, reallocating that supply to other countries around the world.
Nike’s arrangements with its partners will come into effect at different times throughout the retailer’s fiscal 2026.
Nike Digital sales in Q4
In Q4, Nike Digital sales fell 26% year over year. And that’s on top of a 10% drop the prior year. Nike Digital includes global sales via Nike’s websites and apps.
In North America, Nike Digital declined 25%. Nike “saw a meaningful improvement in markdown rates as well as a higher share of demand at full price in the quarter” in the region, Friend said.
And in Europe, the Middle East and Africa (EMEA), Nike Digital revenue fell 36%. It “delivered improvements” in markdown rates and a double-digit increase in its share of products sold at full price, according to Friend.
Meanwhile, Nike Digital revenue in Greater China fell 31%, and 6% in Asia-Pacific and Latin America, representing the largest and smallest decreases by region, respectively.
Nike revenue by region
In North America, Nike revenue fell 11% in Q4. Nike Direct declined 14% and wholesale revenue decreased 8%. However, its physical store sales grew 3%.
“North America made meaningful progress cleaning up the marketplace and repositioning Nike Digital as a full-price model,” Friend said.
In EMEA, Nike revenue declined 10% as Direct fell 19%. While wholesale declined 4%, physical-store revenue increased 5%.
“EMEA is furthest along in cleaning up the marketplace and repositioning NIKE Digital within an integrated marketplace,” Friend assessed.
Nike revenue in APLA declined 3% in Q4. Revenue from Nike Direct was close to flat, slipping just 1%, while Nike wholesale fell 5%. Revenue from physical stores in the region grew 4%.
Nike revenue declined across the board in Greater China, though, falling 20% overall. It was the only region to not grow physical-store revenue in the quarter. As part of the, Nike Direct fell 15% as wholesale decreased 24% and physical-store revenue declined 6%.
Looking forward to fiscal 2026
“Over the next two quarters, Nike will continue liquidating excess inventory through our value stores and select value partners,” Friend said. “In the second half, we then expect to see a modest headwind to revenue as we lap aggressive clearance activity in the prior year.”
He added that it expects ecommerce traffic to decline double digits in its fiscal 2026 as it repositions Nike Digital to a full-price model and reduces the mix of its classic footwear franchises.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s article on Nike Digital sales.
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