NIKE, Inc. (NKE): BCG Matrix [Dec-2025 Updated]

Honestly, you're looking at NIKE, Inc. after a year that required a necessary, though painful, reset, evidenced by total revenue falling 9.84% to $46.3 billion; so, to map out where to invest and where to divest, I've broken down their entire portfolio using the BCG Matrix. This framework cuts through the noise to show you precisely which segments are the high-market-share Cash Cows, like the foundational Men's Footwear division, versus the Question Marks, such as the Women's Division or the digital business that saw sales drop a sharp 20% to $9.6 billion in FY25. We need to clearly see which new innovations qualify as Stars deserving capital and which Dogs, like the Converse Brand which saw revenue drop 19%, are dragging down overall performance, giving you a clear-eyed view of the brand's late-2025 strategic positioning.

Background of NIKE, Inc. (NKE)

You're looking at NIKE, Inc. (NKE) right as they wrap up a challenging fiscal year and pivot into a new strategy, so let's ground ourselves in the numbers from their latest full-year report. For the fiscal year ended May 31, 2025, NIKE, Inc. posted total revenues of $46.3 billion, which was a 10 percent drop on a reported basis compared to the prior year's $51.4 billion. Honestly, on a currency-neutral basis, the revenue decline was slightly less steep at 9 percent.

Digging into the segments for that full fiscal year 2025, the core NIKE Brand brought in $44.7 billion, reflecting that 9 percent currency-neutral decline across all geographies. The Converse brand, which is a smaller piece of the pie, saw a significant contraction, with fourth-quarter revenues hitting just $357 million, down 26 percent. The company's distribution channels also shifted; NIKE Direct revenues for the full year were $18.8 billion (down 13 percent), while Wholesale revenues settled at $25.9 billion (down 7 percent).

The bottom line felt the pressure, too. For the full fiscal year 2025, net income fell sharply to $3.2 billion, a 44 percent drop year-over-year, leading to diluted earnings per share of $2.16, down 42 percent. You can see the margin squeeze in the fourth quarter of fiscal 2025, where the gross margin decreased 440 basis points to 40.3 percent. To be fair, President & CEO Elliott Hill is driving the 'Win Now' actions and a new 'sport offense' realignment to reposition the business for growth moving forward.

As of May 2025, the balance sheet still showed strength, with total assets at $36.58 billion and cash and cash equivalents at $7.46 billion. The company also continued its capital return program, paying out $2.3 billion in dividends for the full year, which was up 6 percent from the prior year. We've seen a slight improvement in the very recent Q1 of fiscal 2026 (ended August 31, 2025), where total reported revenue ticked up 1 percent to $11.7 billion, though it was flat on a currency-neutral basis. That's the landscape you're dealing with right now.

NIKE, Inc. (NKE) - BCG Matrix: Stars

Stars are defined by having high market share in a growing market. These are the leaders in the business, but they still need significant support for promotion and placement. If market share is maintained, Stars are likely to grow into Cash Cows when the high-growth market eventually slows down. A key tenet of a Boston Consulting Group strategy for growth is to invest in these Stars.

The overall NIKE Brand, which, at $44.7 billion in FY25 revenue, remains the undisputed market leader globally. This segment saw a 9 percent decline on a reported basis and a 9 percent decline on a currency-neutral basis for the full fiscal year 2025. The total NIKE, Inc. revenue for FY25 was $46.3 billion, representing a 10 percent reported decline and a 9 percent currency-neutral decline compared to the prior year.

You're looking at the core business drivers that still command premium positioning, even amid a challenging macro environment. Here's a quick look at the revenue breakdown for the full fiscal year 2025:

New performance running and basketball footwear innovations are key to driving high-margin category growth, even if the overall brand saw a revenue dip. Take the premier racing shoe, the Alphafly 3. This product made a tape-breaking entrance, selling out within minutes across most continents on its January 4th launch day. It is engineered with features like ZoomX foam cushioning, a Full-Length Carbon Fiber Flyplate, and Dual Air Zoom pods in the forefoot. The retail price point for this innovation was listed at £285.

Strategic expansion in high-growth emerging markets like Asia and Latin America remains a focus area, targeting the potential for double-digit growth despite currency risks. For the quarterly period ending May 2025, the Asia Pacific and Latin America region reported revenues of $1.575 billion. While this was up 7.14 percent from the prior quarter ($1.47B), it represented a 7.62 percent decrease from the same period one year ago ($1.705B).

Core NIKE Apparel, which is part of the larger NIKE Brand segment, is noted here as having a 5 percent currency-neutral decline in FY25, yet it maintains a dominant market share in a segment that is globally growing. This suggests that while the overall brand faced headwinds, the apparel category, by definition of being a Star, holds a leading position in its specific sub-market. You can see the broader segment performance in the table above.

The investment thesis for Stars revolves around feeding them cash to maintain that high market share in a growing space. The company returned approximately $5.3 billion to shareholders in FY25, including $2.3 billion in dividends (up 6 percent) and $3.0 billion in share repurchases. Finance: draft 13-week cash view by Friday.

NIKE, Inc. (NKE) - BCG Matrix: Cash Cows

You're looking at the core engine of the business here, the units that have already won their major battles and now just need careful management to keep the cash flowing. These are the established revenue streams that fund the riskier bets elsewhere in the portfolio. For NIKE, Inc., these segments are characterized by high market penetration in mature categories, meaning growth is slow, but the profit margins and cash generation are substantial.

The Wholesale Channel is a prime example of a Cash Cow, even as the Company navigates channel shifts. For the full fiscal year 2025, this channel brought in $25.9 billion in revenue. While this represented a 6% decline on a currency-neutral basis for the full year, its sheer size ensures it provides massive, stable cash flow. This stability is crucial for covering corporate overhead and funding other strategic areas.

Consider the foundational product lines that underpin the entire structure. The core Footwear and Apparel divisions, particularly the established lifestyle offerings, fit this profile perfectly. These classic silhouettes, like the Air Force 1 and Dunk, require minimal new research and development investment compared to performance innovations, yet they consistently deliver high-volume sales. Looking at the full fiscal year 2025 segment revenue, Footwear generated $30.97 B, representing 66.87% of total revenue, while Apparel contributed $15.27 B, or 32.97% of the total. These foundational segments are the bedrock.

Even within the direct-to-consumer shift, one part of that strategy acts as a reliable generator. The global network of NIKE-owned physical stores showed resilience in the final quarter of fiscal 2025, posting a 2% increase in revenue in Q4 FY25. This channel often captures full-price sales, which helps maintain margin health, acting as a steady source of cash, even when the digital side faces headwinds. For the full year, revenues from these owned stores were reported as flat.

Here's a quick look at the key financial metrics for these major revenue generators in FY25:

The Company's strategy for these units is to 'milk' the gains passively while making targeted, low-cost investments to maintain efficiency. For instance, inventory levels at the fiscal year end were essentially flat at $7.5 billion versus $7.519 billion a year earlier, suggesting disciplined management of these mature assets. The goal is to keep the infrastructure supporting these cash cows running smoothly, perhaps through efficiency upgrades rather than massive promotional spending, to maximize the net cash flow delivered to the corporation.

• The Wholesale Channel generated $25.9 billion in FY25.
• Footwear accounted for 66.87% of total revenue at $30.97 B.
• Apparel accounted for 32.97% of total revenue at $15.27 B.
• NIKE-owned stores saw a 2% revenue increase in Q4 FY25.
• Full Year FY25 Net Income was $3.2 billion.

NIKE, Inc. (NKE) - BCG Matrix: Dogs

You're looking at the parts of NIKE, Inc. (NKE) that aren't driving growth or consuming massive cash-the Dogs. These are units where market share and market growth are both low. Honestly, they're often candidates for divestiture, or at least a serious reduction in investment.

For fiscal year 2025 (FY25), NIKE, Inc. posted total revenues of $46.3 billion, which was a 10% decline on a reported basis from the prior year, with net income plunging 44% to $3.2 billion. This overall performance sets the stage for why certain segments fall into this low-growth, low-share category.

The Converse Brand

The Converse Brand is a clear example here. Its reliance on classic styles, facing intense competition, pushed it into the Dog quadrant. For the full fiscal year 2025, Converse revenues were $1.7 billion, marking a significant drop of 19% year-over-year on a reported basis. That's a tough number to look at. Even in the third quarter (Q3 FY25), Converse revenue was $405 million, down 18% reported from the prior year's Q3.

Here's a quick look at the revenue performance for this unit:

Over-saturated Classic Footwear Silhouettes

Certain heritage product lines, which historically drove significant volume, are showing signs of market fatigue. Specifically, the classic Air Jordan 1 silhouettes experienced softness. During Q3 FY25, the broader Jordan Brand, along with other classic footwear franchises like Air Force 1 and Dunk, saw declines. The company noted that these classic franchises decelerated faster than the overall business, with the Jordan Brand contributing to a double-digit decline in the overall sportswear segment for the quarter.

The situation is one where inventory remains elevated for some of these styles, requiring continued actions to clear the marketplace. The focus is shifting to performance products to offset these declines.

The Equipment Category

The Equipment category, which includes items like balls, bags, and other accessories, represents a smaller portion of NIKE, Inc.'s overall revenue base, fitting the low market share characteristic of a Dog. This segment typically operates with lower margins compared to core footwear and apparel, and it doesn't receive the same level of strategic growth investment.

The quarterly revenue figures clearly show its relative size:

• Equipment Revenue (Latest Quarter, May 2025): $567.00M
• Equipment Revenue (One Year Ago, May 2024): $578.00M
• Year-over-Year Change (May 2024 to May 2025): Down 1.90%
• Quarter-over-Quarter Change (Feb 2025 to May 2025): Up 18.87%

The year-over-year decline of 1.90% to $578.00M in the comparable period a year ago suggests low growth, and its absolute value is dwarfed by the total quarterly revenue of $11.3 billion in Q3 FY25.

Underperforming Non-Strategic Wholesale Accounts

NIKE, Inc. has been actively managing its distribution network to improve brand control and margin, which involves exiting relationships with underperforming, non-strategic wholesale accounts. This is a classic move to minimize cash traps in low-return channels. While major pivots were communicated in prior years, reducing partners by more than 50 percent over four years, the ongoing process in FY25 aligns with minimizing exposure to these lower-margin, less brand-aligned outlets. The strategy prioritizes working with a smaller number of strategic partners who can deliver a premium, consistent consumer experience.

The overall goal of these account pivots is to shift away from undifferentiated retailers, which helps protect margins and brand equity across the portfolio.

Finance: draft 13-week cash view by Friday.

NIKE, Inc. (NKE) - BCG Matrix: Question Marks

You're looking at the parts of NIKE, Inc. (NKE) that are burning cash now but have the potential to become future Stars. These are the Question Marks: high-growth markets where NIKE, Inc. currently holds a low relative market share. They demand heavy investment to capture more of that growing market, or they risk becoming Dogs.

NIKE Brand Digital Business

The digital channel remains a high-growth area for retail, but NIKE, Inc.'s performance here in FY25 shows a significant struggle to convert potential into actual sales. The NIKE Brand Digital business saw a sharp 20% decline in sales, landing at $9.6 billion for the full fiscal year. This decline is especially concerning because it happened in the very channel that should be expanding fastest. For context, NIKE Direct revenues for the full year were $18.8 billion, meaning the digital component represented a significant portion of that direct business, and it is shrinking fast. This unit consumes cash to maintain its platform and innovation, yet the returns are currently negative, signaling a critical need for a strategy pivot to reverse the trend quickly.

The Women's Division

The Women's Division is a declared high-priority segment, yet its current revenue base suggests it's still fighting for share in a massive, growing space. Revenue for this division settled at roughly $8.5 billion. While this is a substantial absolute number, it represents a low relative share when you look at the overall market opportunity. The market for women's activewear itself is expected to reach $129.21 billion in 2025, with projections showing continued robust growth. You see the potential for a Star here, but only if the investment translates into rapid share gains against entrenched competitors and emerging niche players. Defintely, closing the revenue gap with the men's business hinges on this segment's ability to accelerate growth.

Here's a quick look at the market context for this high-growth segment:

Sport Offense Strategy Execution

The new 'Sport Offense' strategy is the primary lever to turn these Question Marks into Stars, specifically by reigniting demand for core performance products. The challenge is immediate: NIKE, Inc. must gain market share against nimble competitors like Hoka and On Running, which have been gaining traction in performance categories. The strategy aims to focus investment where it can quickly build dominance, but the initial results suggest the market is still highly contested. This requires heavy, targeted investment in product innovation and marketing to ensure these performance lines capture the growth that the market is offering, rather than letting competitors take it.

Wearable Technology and Digital Subscriptions

Wearable technology and associated digital subscription services represent a classic Question Mark profile: a high-growth opportunity where NIKE, Inc. currently has a low market footprint. The connected fitness space is exploding, demanding significant cash outlay for R&D and ecosystem integration. The company needs to decide if it will invest heavily to become a major player or divest from the space to focus on core apparel and footwear.

The market growth rates show why this area demands attention:

• Global wearable technology market size estimated to reach $98.47 billion in 2025.
• Projected CAGR for the broader wearable technology market is 13.6% from 2025 to 2030.
• The wearable fitness technology market alone was valued at approximately $15,058.61 million in 2025.

These figures illustrate the scale of the market that NIKE, Inc. must quickly penetrate to avoid these assets becoming Dogs.