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Stock Analysis on Net

Nike Inc. (NYSE:NKE)

Common-Size Income Statement
Quarterly Data

Nike Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Aug 31, 2026 May 31, 2026 Feb 28, 2026 Nov 30, 2025 Aug 31, 2025 May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020
Revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -57.21 -50.85 -59.84 -59.40 -57.82 -59.73 -58.51 -56.38 -54.64 -55.31 -55.25 -55.40 -55.79 -56.37 -56.65 -57.11 -55.74 -55.02 -53.39 -54.10 -53.49 -54.19 -54.44 -56.89 -55.25
Gross profit 42.79% 49.15% 40.16% 40.60% 42.18% 40.27% 41.49% 43.62% 45.36% 44.69% 44.75% 44.60% 44.21% 43.63% 43.35% 42.89% 44.26% 44.98% 46.61% 45.90% 46.51% 45.81% 45.56% 43.11% 44.75%
Demand creation expense -11.17 -10.96 -9.66 -10.24 -10.14 -11.29 -9.65 -9.08 -10.58 -8.65 -8.13 -8.32 -8.26 -8.51 -7.45 -8.28 -7.43 -8.67 -7.86 -8.95 -7.50 -8.08 -6.86 -6.48 -6.39
Operating overhead expense -23.70 -26.24 -25.60 -22.26 -24.13 -26.09 -24.84 -23.34 -24.35 -23.77 -25.87 -22.65 -23.55 -25.59 -24.50 -22.70 -23.46 -24.31 -23.77 -24.14 -21.67 -22.24 -22.50 -22.57 -21.69
Selling and administrative expense -34.87% -37.20% -35.26% -32.50% -34.27% -37.38% -34.49% -32.42% -34.93% -32.43% -34.00% -30.97% -31.81% -34.11% -31.95% -30.97% -30.90% -32.98% -31.63% -33.10% -29.16% -30.31% -29.36% -29.06% -28.08%
Operating income 7.92% 11.95% 4.90% 8.10% 7.91% 2.89% 6.99% 11.20% 10.43% 12.26% 10.75% 13.63% 12.40% 9.52% 11.40% 11.92% 13.36% 12.00% 14.98% 12.80% 17.34% 15.50% 16.20% 14.05% 16.67%
Interest income (expense), net 0.12 0.07 0.13 0.07 0.15 0.20 0.16 0.19 0.37 0.42 0.42 0.16 0.26 0.22 0.06 -0.12 -0.10 -0.33 -0.49 -0.48 -0.47 -0.51 -0.62 -0.62 -0.61
Other income (expense), net 0.17 0.09 0.73 -0.13 -0.20 -0.23 0.34 0.06 0.47 1.01 0.13 0.56 0.08 -0.02 0.47 0.59 1.15 -0.44 0.86 0.90 0.32 0.03 0.21 -0.48 0.13
Income before income taxes 8.21% 12.11% 5.76% 8.04% 7.87% 2.87% 7.49% 11.46% 11.28% 13.69% 11.30% 14.36% 12.74% 9.72% 11.92% 12.39% 14.41% 11.23% 15.36% 13.22% 17.19% 15.02% 15.80% 12.95% 16.19%
Income tax expense -1.86 -2.37 -1.15 -1.67 -1.66 -0.96 -0.44 -2.05 -2.21 -1.79 -1.87 -2.57 -1.53 -1.68 -1.91 -2.40 -2.84 0.53 -2.52 -1.44 -1.89 -2.79 -1.81 -1.82 -1.86
Net income 6.35% 9.74% 4.61% 6.37% 6.20% 1.90% 7.05% 9.41% 9.07% 11.90% 9.43% 11.79% 11.21% 8.04% 10.01% 10.00% 11.57% 11.76% 12.84% 11.77% 15.30% 12.22% 13.99% 11.13% 14.33%

Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).

An analysis of the common-size income statement reveals a significant compression of profit margins over the observed period, characterized by rising costs of sales and an increase in operating expenditures relative to total revenue.

Gross Profitability Trends
Gross profit margins exhibited relative stability between 43% and 46% from August 2020 through early 2022. However, a downward trajectory emerged thereafter, with margins dipping toward 40% by early 2025. A notable volatility is observed in May 2026, where gross profit spiked to 49.15% before returning to 42.79% in August 2026. This suggests a general increase in the cost of sales, which rose from approximately 55% of revenues in 2020 to nearly 60% during the 2024-2025 period.
Operating Expense Analysis
Operating expenses as a percentage of revenue have expanded consistently. Demand creation expenses, which averaged approximately 6.5% in 2020, climbed to a range of 9% to 11% by 2024 and 2026. Similarly, operating overhead expenses rose from approximately 21-22% to peaks of 26%. The combined selling and administrative expenses reflect this upward pressure, increasing from a baseline of roughly 28% to a peak of 37.38% in May 2025.
Operating and Net Income Performance
The confluence of shrinking gross margins and rising operating expenses led to a substantial decline in operating income. Operating margins fell from a high of 17.34% in August 2021 to a low of 2.89% in May 2025. Net income followed a similar pattern, starting at 14.33% in August 2020 and reaching a trough of 1.90% in May 2025. While there was a partial recovery to 6.35% by August 2026, the overall profitability profile remains significantly lower than the 2020-2021 levels.
Non-Operating Items and Tax Impact
A shift in the net interest position is observable, moving from a net interest expense (averaging -0.6% of revenues) in 2020-2021 to a consistent net interest income position from 2023 onward. Income tax expenses as a percentage of revenue remained relatively stable, though they mirrored the decline in pre-tax income, dropping from approximately 2% to 0.44% during the May 2025 period of lowest profitability.

The overall financial trajectory indicates an era of margin erosion, where the cost of generating revenue and the expenses required to maintain demand have increased more rapidly than revenue growth, resulting in a leaner net profit margin.

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