Shares in Nike (NYSE: NKE) are falling in early-market trading after the company announced its Q3 2025 results yesterday. Currently, NKE shares are down around 8% as investors digest not just the company’s most recent earnings results, but the statements the shoe giant made about its current Q4, which ends in May. Here’s what you need to know about Nike’s stock price drop.
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Yesterday, Nike announced its results for its third quarter of fiscal 2025, which ended on February 28. The quarter is arguably the most important in Nike’s fiscal calendar year as it encompasses the month of December when shoppers are out and about buying gifts for the holiday season. Unfortunately, Nike’s results were down in several key categories during Q3:
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Revenue: $11.3 billion — down 9%
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Nike Direct revenues: $4.7 billion — down 12%
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Wholesale revenues: $6.2 billion — down 7%
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Diluted earnings per share (EPS): 54 cents
Now, there are some small highlights to the company’s earnings announcements, as noted by CNBC. Nike posted an EPS of 54 cents for the quarter. Though that is down from the EPS of 77 cents for the quarter a year earlier, it still beat estimates of an EPS of 29 cents for Q3 2025. Likewise, while its revenue of $11.3 billion was down from its revenue of $12.4 billion a year earlier, its Q3 2025 revenue beat consensus estimates of $11.01 billion.
In other words, while Nike did worse than year-over-year, the company did not do as badly as some analysts had anticipated.
Despite beating estimates, Nike stock is still trading much lower this morning. Yesterday, the company’s share price closed at $71.86, but today, the company’s stock price is down around 8% as of the time of this writing to below $66.50 per share.
The main reason for that drop seems to be investor jitters over the company’s warnings about its current Q4, which ends in May. As noted by CNBC, Nike has warned that it is in for a rough Q4. Why? The company cited declining consumer confidence and President Trump’s tariffs on China as two main factors.
Since Trump took office in January, the stock market has tumbled, and concerns have increased as experts—and increasingly, consumers—fear that the president’s policies are negatively impacting the economy. Trump has initiated a number of tariffs—or threats of tariffs—against America’s largest trading partners, including Mexico, Canada, and China.
