Nike Inc. (NYSE:NKE)

The financial data reveals several noteworthy trends and fluctuations across the reported periods.

Gross Profit and Cost of Sales

Gross profit as a percentage of revenues generally remains robust, fluctuating mostly between 40% and 46% throughout the periods. A significant dip is observed in May 2020, with gross profit falling to 37.27%, which corresponds to an unusual increase in the cost of sales to -62.73% of revenues in the same period. This anomaly likely reflects extraordinary circumstances affecting production or sourcing costs. Subsequent quarters show recovery and stabilization, yet from early 2023 an emerging gradual decline in gross profit margin is seen, dropping below 42% by February and May 2025. This suggests increasing pressure on cost efficiency or pricing power over time.

Demand Creation Expense

Demand creation expense exhibits volatility, with notable spikes in periods such as May 2020 (-13.04%), and more moderate levels fluctuating mostly between -6.3% and -8.6%. More recently, increased expenditure is recorded towards the end of the dataset, nearing -11.29% in May 2025, suggesting intensifying investment in marketing or consumer engagement efforts possibly to counteract competitive or market challenges.

Operating Overhead and Selling & Administrative Expenses

Operating overhead expense and selling & administrative expense combined account for a significant share of revenue, generally ranging from approximately -50% to -60%. May 2020 again shows a stark spike, with overheads remaining elevated near or above -50%. Elsewhere, selling and administrative expenses reflect a gradual rise over time, from around -31% in earlier periods to over -37% by May 2025, indicating ongoing incremental increases in fixed or semi-fixed operational costs.

Operating Income

Operating income as a percentage of revenues follows gross profit trends but with amplified volatility. It remains positive in most quarters, averaging between 10% and 17%, except for May 2020 where it turns deeply negative (-13.27%), corresponding to the previously noted cost and overhead spikes. Following this dip, operating income recovers with fluctuations, but trending downward toward the end of the period with a low of 2.89% in May 2025, indicative of margin compression or deteriorating profitability.

Interest and Other Income (Expense)

Interest expense generally remains low, close to zero but negative in most quarters until a mild positive turnaround occurring around late 2022 to 2024 periods. Other income/expense demonstrates sporadic positive and negative values without a clear directional trend, though more frequent small positive values appear in later periods, providing marginal offset to operating earnings variations.

Income Before Taxes and Net Income

Income before income taxes mirrors operating income patterns and is likewise impacted by unusual events in May 2020 with a negative figure (-12.74%). Thereafter, this measure mostly stays positive but shows gradual weakening in the latest quarters, descending sharply to 2.87% by May 2025. The income tax expense follows no consistent trend, sometimes positive but often negative as a percentage of revenues, which might indicate tax credits or adjustments. Net income trends similarly to pretax income, generally maintaining a positive margin around 9% to 13% but moving lower to just 1.9% by May 2025, highlighting notable margin pressure on the bottom line in the most recent reported periods.

Overall, the data suggests a period of disruption around mid-2020 with severe margin contraction and elevated expenses, followed by partial recovery in profitability and margins. However, the latter periods display a gradual decline in profitability metrics, increasing cost pressures, and rising operating expenses as a percentage of revenues, resulting in sustained margin compression and declining net income margins. These patterns imply challenges in maintaining cost efficiencies and pricing strength amid potentially evolving market conditions.