Sportswear giant Nike has posted a 12% decline in revenues on a reported basis to $11.1bn in the fourth quarter (Q4) of the fiscal year 2025 (FY25).

Net income plummeted 86% to $0.2bn, with diluted earnings per share also decreasing 86% to $0.14.

The Nike brand experienced a decrease in revenues across all geographies, reporting an overall 11% drop to $10.8bn.

Nike Direct revenues fell 14% to $4.4bn, influenced by a 26% decrease in Nike Brand Digital, despite a 2% increase in Nike-owned stores.

Wholesale revenues also saw a reduction in the quarter, down 9% to $6.4bn.

The company's gross margin suffered, decreasing by 440 basis points to 40.3%, mainly due to higher discounts and channel mix changes.

Selling and administrative expenses saw a slight increase of 1% to $4.1bn.

Nike executive vice-president and chief financial officer Matthew Friend stated: "The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here.

"I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control and executing our Win Now actions."

During the full FY25, Nike's revenues stood at $46.3bn, a 10% decrease on a reported basis and a 9% decrease on a currency-neutral basis.

Nike Brand's annual revenues were down by 9% to $44.7bn, with consistent declines across all geographies.

Nike Direct annual revenues decreased by 13% to $18.8bn, with a notable 20% decline in Nike Brand Digital, while revenues from Nike-owned stores remained flat.

Wholesale revenues for the year were $25.9bn, down by 7% on a reported basis and 6% on a currency-neutral basis.

Selling and administrative expenses for the year decreased by 3% to $16.1bn.

Demand creation expenses for the year increased by 9% to $4.7bn. Operating overhead expenses saw a 7% reduction to $11.4bn.

Net income for the fiscal year was $3.2bn - 44% decrease - and diluted earnings per share dropped 42% to $2.16.

Nike CEO and president Elliott Hill stated: "While our financial results are in line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions.

"As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the 'sport offence'. This will accelerate our Win Now actions to reposition our business for future growth."