What caused Nike's revenue cost to drop in Q2 2025?

Nike's revenue cost dropped in Q2 2025 due to a combination of factors:

1. Strategic Shifts and Market Conditions: Nike's revenue decline is attributed to a lack of innovation in its product offerings and an overreliance on promotions to drive sales. This has led to a loss of market share to competitors. Additionally, the company has faced challenges in key markets, particularly China.
2. Decline in Gross Margins: There has been a decline in gross margins, which reached 41.5%. This indicates that Nike is facing increased cost pressures or is unable to pass on price increases to consumers, potentially due to intense competition or pricing strategies.
3. Impact of Macro Pressures and Consumer Behavior: Subdued discretionary spending amid macroeconomic pressures has also contributed to the decline in revenue. This suggests that consumers may be tightening their budgets, leading to reduced demand for Nike's products.

In summary, Nike's revenue cost drop in Q2 2025 is a result of a combination of strategic missteps, challenging market conditions, and macroeconomic pressures.