Nike Surprises Wall Street with Q4 EPS Beat Amid Revenue Slump
Nike’s Q4 earnings report for the period ending May 2025 delivered a mix of positive surprises and steep declines. While the global sportswear giant reported a 12% year-over-year drop in revenue to $11.1 billion, it still surpassed expectations. Analysts had forecast $10.72 billion, giving Nike a surprise beat of +3.56%.
On the bottom line, earnings per share (EPS) came in at $0.14, a sharp decline from $1.01 a year earlier. Yet again, Nike managed to outperform the Zacks Consensus Estimate of $0.12, delivering an EPS surprise of +16.67%.
Geographic Performance: Mixed Results Across Regions
Nike’s revenue across its key global markets revealed a consistent downward trend, though several regions still exceeded analyst expectations.
North America reported $4.70 billion, beating estimates of $4.48 billion, but still down 10.9% year-over-year.
Europe, Middle East, and Africa (EMEA) contributed $3 billion, above the projected $2.84 billion, yet down 8.9%.
Asia Pacific & Latin America brought in $1.58 billion, surpassing the expected $1.50 billion, but fell 7.6% from the previous year.
Greater China met expectations at $1.48 billion, but posted a significant 20.8% year-over-year decline.
Greater China – Equipment dropped sharply to $30 million, far below the $43.42 million estimate, a staggering 34.8% decline.
Total Brand and Segment Analysis: Signs of Pressure
The Total Nike Brand revenue landed at $10.76 billion, exceeding the $10.34 billion consensus but reflecting a 11.4% drop from last year.
Nike’s brand sub-divisions also struggled:
Converse generated $357 million, missing the estimated $428.77 million, a 25.6% decline.
Global Brand Divisions earned $9 million, falling short of the $11.51 million estimate and down 18.2% year-over-year.
Corporate Revenue was reported at -$23 million, close to expectations and unchanged from last year.
Product Categories: Footwear Declines Despite Estimates Beat
Nike’s product categories followed similar patterns:
Footwear revenue hit $7.19 billion, above the $6.84 billion estimate but down 12.8%.
Apparel came in at $3 billion, narrowly topping the $2.94 billion forecast, yet dropped 9.7% compared to the year-ago quarter.
Equipment revenue stood at $567 million, just ahead of the $550.19 million estimate, with a smaller decline of 1.9%.
Investor Takeaway: Strength in Estimates, Weakness in Demand
Nike’s Q4 results show resilience in beating expectations, even as demand declined across regions and categories. From North America to Greater China, Nike continues to navigate a shifting retail environment, supply chain pressures, and softening consumer demand.
Still, its ability to outperform analyst estimates suggests operational efficiency and disciplined cost management—critical traits as the company looks to rebound in upcoming quarters.
Stay tuned to Maple Wire for deeper insights into global market movers.
