How did NKE's earnings surprise trend in 2025?

Nike's earnings surprise trend in 2025 was marked by a decline in earnings and revenues, reflecting significant headwinds across major markets and operating segments. 1. **Earnings Decline**: Nike reported a net income of $794 million for the third quarter of 2025, compared to $1.17 billion in the year-ago quarter. This decline was primarily due to a 9% decrease in third-quarter sales, which amounted to $11.3 billion. 2. **Revenue Slowdown**: The company experienced a significant slowdown in sales across all major markets and operating segments. Wholesale revenues were $6.2 billion, down 7% year-over-year on a reported basis and down 4% on a currency-neutral basis. Nike Direct revenues also fell 12% to $4.7 billion. 3. **Gross Margin Reduction**: Gross margins declined by 330 basis points to 41.5% due to higher markdowns, wholesale discounts, and inventory obsolescence. This reduction in gross margins further impacted the company's earnings. 4. **Inventory Levels**: Nike faced challenges with inventory levels, which were elevated across all geographies. The company anticipated that it would take several quarters to normalize inventory levels. In conclusion, Nike's earnings surprise trend in 2025 was characterized by a significant decline in earnings and revenues, primarily due to a slowdown in sales across all major markets and operating segments. The company's gross margins also suffered due to higher discounts and inventory obsolescence. These challenges highlight the need for Nike to address regional market issues and streamline its operations to regain growth momentum.