Analysis of Reportable Segments
Nike Inc. operates in 5 segments: North America; Europe, Middle East & Africa (EMEA); Greater China; Asia Pacific & Latin America (APLA); and Converse.
Segment Profit Margin
Nike Inc., profit margin by reportable segment
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| North America | 26.21% | 24.19% | 27.21% | 25.24% | 27.86% | 29.62% |
| Europe, Middle East & Africa (EMEA) | 19.23% | 21.01% | 24.90% | 26.32% | 26.39% | 21.26% |
| Greater China | 21.86% | 24.32% | 30.60% | 31.50% | 31.34% | 39.12% |
| Asia Pacific & Latin America (APLA) | 22.22% | 24.43% | 28.01% | 30.04% | 31.84% | 28.64% |
| Converse | 1.53% | 14.18% | 22.77% | 27.85% | 28.52% | 24.63% |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
A general trend of margin compression is observable across all reportable segments over the period from 2021 to 2026. While several segments experienced initial growth or relative stability through 2022, a synchronized downward trajectory in profitability emerged across the entire portfolio in the latter half of the analyzed timeframe.
- North America
- Profit margins in this region exhibited moderate volatility, starting at 29.62% in 2021 and fluctuating throughout the period to end at 26.21% in 2026, with a notable low of 24.19% in 2025.
- Europe, Middle East & Africa (EMEA)
- A period of growth was recorded between 2021 and 2022, where margins rose from 21.26% to 26.39%. This peak was followed by a steady decline, resulting in a margin of 19.23% by 2026.
- Greater China
- The most significant decline in regional profitability is observed in this segment, with margins contracting from a high of 39.12% in 2021 to 21.86% by 2026, representing a substantial erosion of operating efficiency over the six-year period.
- Asia Pacific & Latin America (APLA)
- Margins reached a peak of 31.84% in 2022, followed by a continuous downward trend over the subsequent four years, ending at 22.22% in 2026.
- Converse
- A severe collapse in profit margins occurred within this segment. After reaching a peak of 28.52% in 2022, margins declined precipitously to 14.18% in 2025 and reached a critical low of 1.53% by 2026.
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Segment Profit Margin: North America
Nike Inc.; North America; segment profit margin calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings (loss) before interest and taxes | 5,376) | 4,735) | 5,822) | 5,454) | 5,114) | 5,089) |
| Revenues | 20,511) | 19,572) | 21,396) | 21,608) | 18,353) | 17,179) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 26.21% | 24.19% | 27.21% | 25.24% | 27.86% | 29.62% |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Segment profit margin = 100 × Earnings (loss) before interest and taxes ÷ Revenues
= 100 × 5,376 ÷ 20,511 = 26.21%
The financial performance of the North America segment from 2021 to 2026 is characterized by a period of initial growth followed by volatility in both top-line revenue and operating profitability. While the segment achieved peak revenues in 2023, profitability margins have experienced a general downward trajectory with intermittent recoveries.
- Revenue Trends
- Revenues exhibited an upward trend from May 31, 2021, reaching a peak of US$ 21,608 million in 2023. This was followed by a period of contraction, with figures declining to US$ 19,572 million by May 31, 2025. A recovery phase is observed in 2026, as revenues rose again to US$ 20,511 million.
- Earnings Before Interest and Taxes (EBIT)
- Earnings grew steadily from US$ 5,089 million in 2021 to a peak of US$ 5,822 million in 2024. This peak occurred despite a slight decrease in revenue during that same year, suggesting a temporary improvement in operational efficiency or cost management. However, a significant decline occurred in 2025, where earnings dropped to US$ 4,735 million, the lowest point in the analyzed period, before rebounding to US$ 5,376 million in 2026.
- Segment Profit Margin Analysis
- The segment profit margin demonstrates a volatile pattern, starting at a high of 29.62% in 2021 and declining to 25.24% by 2023. A moderate recovery to 27.21% was recorded in 2024, coinciding with the peak in EBIT. The margin then reached its lowest point of 24.19% in 2025, before improving to 26.21% in 2026. The overall trend indicates that the segment has struggled to maintain its initial 2021 profitability levels despite fluctuations in revenue.
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Segment Profit Margin: Europe, Middle East & Africa (EMEA)
Nike Inc.; Europe, Middle East & Africa (EMEA); segment profit margin calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings (loss) before interest and taxes | 2,417) | 2,575) | 3,388) | 3,531) | 3,293) | 2,435) |
| Revenues | 12,572) | 12,257) | 13,607) | 13,418) | 12,479) | 11,456) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 19.23% | 21.01% | 24.90% | 26.32% | 26.39% | 21.26% |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Segment profit margin = 100 × Earnings (loss) before interest and taxes ÷ Revenues
= 100 × 2,417 ÷ 12,572 = 19.23%
The EMEA segment experienced a period of financial expansion and margin optimization between 2021 and 2023, followed by a progressive contraction in both profitability and revenue through 2026.
- Revenue Trends
- Revenues exhibited a consistent upward trajectory from 2021, increasing from 11,456 million USD to a peak of 13,607 million USD in 2024. A reversal occurred in 2025, with revenues declining to 12,257 million USD, followed by a marginal recovery to 12,572 million USD in 2026.
- Earnings Before Interest and Taxes (EBIT)
- EBIT grew substantially in the early part of the period, rising from 2,435 million USD in 2021 to a peak of 3,531 million USD in 2023. A downward trend ensued, with earnings decreasing to 2,417 million USD by 2026. The decline in EBIT became more pronounced starting in 2024, outpacing the fluctuations seen in total revenue.
- Segment Profit Margin Analysis
- The segment profit margin saw a sharp increase from 21.26% in 2021 to a peak of 26.39% in 2022. This elevated profitability remained stable through 2023 at 26.32%, before entering a period of steady erosion. The margin contracted to 24.90% in 2024 and 21.01% in 2025, eventually reaching a period low of 19.23% in 2026. This trajectory indicates that by 2026, the segment's operational efficiency had fallen below the levels recorded at the start of the analyzed period.
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Segment Profit Margin: Greater China
Nike Inc.; Greater China; segment profit margin calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings (loss) before interest and taxes | 1,278) | 1,602) | 2,309) | 2,283) | 2,365) | 3,243) |
| Revenues | 5,847) | 6,586) | 7,545) | 7,248) | 7,547) | 8,290) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 21.86% | 24.32% | 30.60% | 31.50% | 31.34% | 39.12% |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Segment profit margin = 100 × Earnings (loss) before interest and taxes ÷ Revenues
= 100 × 1,278 ÷ 5,847 = 21.86%
The Greater China segment exhibits a consistent downward trend in both revenue generation and operational profitability over the period from May 31, 2021, to May 31, 2026. The data indicates a substantial contraction in the scale of operations and a simultaneous erosion of profit margins.
- Revenue Performance
- Revenues experienced a general decline, falling from a peak of 8,290 million US dollars in 2021 to 5,847 million US dollars by 2026. While a brief recovery was observed in 2024, where revenues increased to 7,545 million US dollars from 7,248 million US dollars the previous year, this growth was temporary and followed by a sharp decline in the subsequent two years.
- Earnings before Interest and Taxes (EBIT)
- Earnings before interest and taxes show a more severe contraction than revenue. EBIT decreased from 3,243 million US dollars in 2021 to 1,278 million US dollars in 2026. The most significant drop occurred between 2021 and 2022, and again between 2024 and 2026, indicating that operating expenses or cost of goods sold did not decrease proportionally with the falling revenues.
- Segment Profit Margin
- The segment profit margin demonstrates a clear negative trajectory, declining from 39.12% in 2021 to 21.86% in 2026. Following an initial sharp drop to 31.34% in 2022, the margin remained relatively stable between 2022 and 2024. However, a second period of significant deterioration began in 2025, with the margin falling to 24.32%, and further declining to 21.86% by 2026. This trend suggests a weakening of the segment's pricing power or an increase in operating costs relative to sales.
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Segment Profit Margin: Asia Pacific & Latin America (APLA)
Nike Inc.; Asia Pacific & Latin America (APLA); segment profit margin calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings (loss) before interest and taxes | 1,387) | 1,527) | 1,885) | 1,932) | 1,896) | 1,530) |
| Revenues | 6,243) | 6,251) | 6,729) | 6,431) | 5,955) | 5,343) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 22.22% | 24.43% | 28.01% | 30.04% | 31.84% | 28.64% |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Segment profit margin = 100 × Earnings (loss) before interest and taxes ÷ Revenues
= 100 × 1,387 ÷ 6,243 = 22.22%
The financial performance of the Asia Pacific & Latin America segment is characterized by an initial phase of expansion followed by a sustained contraction in profitability and a subsequent decline in revenue. While the segment achieved peak revenues in 2024, profitability peaked earlier, indicating a divergence between top-line growth and operational efficiency.
- Revenue Trajectory
- A period of consistent growth is observed from 2021 to 2024, with revenues increasing from US$ 5,343 million to a peak of US$ 6,729 million. However, this growth trend reversed after 2024, with revenues declining to US$ 6,251 million in 2025 and remaining nearly stagnant at US$ 6,243 million by 2026.
- Earnings Before Interest and Taxes (EBIT)
- Operating earnings experienced a rapid increase between 2021 and 2023, reaching a maximum of US$ 1,932 million. Following this peak, EBIT entered a steady decline, falling to US$ 1,885 million in 2024 and continuing downward to US$ 1,387 million by 2026. The decline in earnings began one year prior to the decline in revenues, suggesting increasing operational costs or pricing pressures.
- Segment Profit Margin Analysis
- The segment profit margin peaked in 2022 at 31.84%, representing the high point of operational efficiency for the period. Since 2022, a consistent and accelerating downward trend is evident. The margin compressed to 30.04% in 2023, 28.01% in 2024, 24.43% in 2025, and finally to 22.22% in 2026. This represents a total contraction of 962 basis points from the peak, reflecting a significant erosion of the segment's ability to convert sales into operating profit.
Overall, the data indicates a period of margin compression that persists even as revenues were growing between 2022 and 2024. The subsequent decline in both revenues and EBIT from 2025 onward suggests a challenging operational environment in the Asia Pacific & Latin America region, characterized by diminishing returns and reduced profitability.
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Segment Profit Margin: Converse
Nike Inc.; Converse; segment profit margin calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings (loss) before interest and taxes | 18) | 240) | 474) | 676) | 669) | 543) |
| Revenues | 1,174) | 1,692) | 2,082) | 2,427) | 2,346) | 2,205) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 1.53% | 14.18% | 22.77% | 27.85% | 28.52% | 24.63% |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Segment profit margin = 100 × Earnings (loss) before interest and taxes ÷ Revenues
= 100 × 18 ÷ 1,174 = 1.53%
The Converse segment experienced a trajectory of growth and profitability expansion between 2021 and 2023, followed by a severe and accelerating financial decline through 2026. The period is characterized by an initial peak in operational performance followed by a significant contraction in both top-line revenue and bottom-line earnings.
- Revenue Performance
- Revenues grew steadily from US$ 2,205 million in 2021 to a peak of US$ 2,427 million in 2023. This growth trend reversed sharply thereafter, with revenues falling to US$ 2,082 million in 2024, US$ 1,692 million in 2025, and ultimately dropping to US$ 1,174 million by 2026, representing a decrease of approximately 51.6% from the 2023 peak.
- Earnings before Interest and Taxes (EBIT)
- Earnings mirrored the revenue trajectory, increasing from US$ 543 million in 2021 to a maximum of US$ 676 million in 2023. A precipitous decline followed, with earnings falling to US$ 474 million in 2024 and US$ 240 million in 2025, before nearly evaporating to US$ 18 million by 2026.
- Segment Profit Margin Erosion
- The segment profit margin reached its highest point in 2022 at 28.52%. From that peak, a consistent downward trend is observed. The margin contracted to 27.85% in 2023 and 22.77% in 2024, before experiencing a collapse to 14.18% in 2025 and a critical low of 1.53% in 2026.
The correlation between declining revenues and the rapid compression of profit margins suggests a significant loss of operational leverage. The fact that earnings fell more sharply than revenues—culminating in a margin near zero percent—indicates that the segment was unable to scale its cost structure downward in alignment with the decreasing sales volume.
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Revenues
Nike Inc., revenues by reportable segment
US$ in millions
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| North America | 20,511) | 19,572) | 21,396) | 21,608) | 18,353) | 17,179) |
| Europe, Middle East & Africa (EMEA) | 12,572) | 12,257) | 13,607) | 13,418) | 12,479) | 11,456) |
| Greater China | 5,847) | 6,586) | 7,545) | 7,248) | 7,547) | 8,290) |
| Asia Pacific & Latin America (APLA) | 6,243) | 6,251) | 6,729) | 6,431) | 5,955) | 5,343) |
| Global Brand Divisions | 49) | 48) | 45) | 58) | 102) | 25) |
| NIKE Brand | 45,222) | 44,714) | 49,322) | 48,763) | 44,436) | 42,293) |
| Converse | 1,174) | 1,692) | 2,082) | 2,427) | 2,346) | 2,205) |
| Corporate | 2) | (97) | (42) | 27) | (72) | 40) |
| Total | 46,398) | 46,309) | 51,362) | 51,217) | 46,710) | 44,538) |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
Total revenues exhibited a growth trajectory from 2021, peaking in 2024 at 51,362 million US$, followed by a contraction in 2025 and relative stagnation in 2026. The overall revenue performance indicates a period of expansion followed by a corrective phase, with total figures for 2026 remaining below the peaks observed between 2023 and 2024.
- North America Revenue Trends
- As the largest contributing segment, North America showed strong growth from 17,179 million US$ in 2021 to a peak of 21,608 million US$ in 2023. A subsequent decline is observed, reaching 19,572 million US$ in 2025, before a modest recovery to 20,511 million US$ in 2026.
- EMEA Revenue Trends
- The Europe, Middle East, and Africa segment maintained a steady increase from 11,456 million US$ in 2021 to 13,607 million US$ in 2024. Similar to the North American market, a dip occurred in 2025 to 12,257 million US$, with a slight upward correction to 12,572 million US$ in 2026.
- Greater China Revenue Trends
- A consistent downward trend is observed in Greater China. Revenues declined from 8,290 million US$ in 2021 to 5,847 million US$ by 2026, representing the most significant long-term regional contraction across the analyzed period.
- APLA Revenue Trends
- The Asia Pacific and Latin America segment grew steadily from 5,343 million US$ in 2021 to 6,729 million US$ in 2024. Revenue then stabilized, ending the period at 6,243 million US$ in 2026.
- NIKE Brand Performance
- The NIKE Brand remains the primary driver of total revenue, mirroring the overall corporate trend with a peak of 49,322 million US$ in 2024 and a subsequent decline to 45,222 million US$ by 2026.
- Converse Performance
- Converse experienced a period of stability and slight growth through 2023, peaking at 2,427 million US$. However, a sharp downward trajectory followed, with revenues falling to 1,174 million US$ in 2026, indicating a substantial loss of market share or brand contraction.
- Corporate and Global Brand Divisions
- The Global Brand Divisions remained relatively flat and immaterial to the total revenue mix. Corporate revenues showed high volatility, fluctuating between positive and negative values, which suggests periodic internal adjustments or non-operational accounting entries.
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Earnings (loss) before interest and taxes
Nike Inc., earnings (loss) before interest and taxes by reportable segment
US$ in millions
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| North America | 5,376) | 4,735) | 5,822) | 5,454) | 5,114) | 5,089) |
| Europe, Middle East & Africa (EMEA) | 2,417) | 2,575) | 3,388) | 3,531) | 3,293) | 2,435) |
| Greater China | 1,278) | 1,602) | 2,309) | 2,283) | 2,365) | 3,243) |
| Asia Pacific & Latin America (APLA) | 1,387) | 1,527) | 1,885) | 1,932) | 1,896) | 1,530) |
| Global Brand Divisions | (4,603) | (4,699) | (4,720) | (4,841) | (4,262) | (3,656) |
| NIKE Brand | 5,855) | 5,740) | 8,684) | 8,359) | 8,406) | 8,641) |
| Converse | 18) | 240) | 474) | 676) | 669) | 543) |
| Corporate | (2,023) | (2,202) | (2,619) | (2,840) | (2,219) | (2,261) |
| Total | 3,850) | 3,778) | 6,539) | 6,195) | 6,856) | 6,923) |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
Total earnings before interest and taxes exhibit a general downward trajectory over the analyzed period, characterized by relative stability from 2021 to 2024 followed by a significant contraction in 2025. Total earnings decreased from 6,923 million US$ in 2021 to 3,850 million US$ by 2026, representing a substantial reduction in overall profitability.
- Regional Performance Trends
- North America consistently serves as the primary contributor to earnings. While it experienced growth through 2024, reaching a peak of 5,822 million US$, a sharp decline occurred in 2025 before a partial recovery to 5,376 million US$ in 2026.
- Greater China shows the most consistent and severe decline, with earnings falling from 3,243 million US$ in 2021 to 1,278 million US$ in 2026, indicating a sustained erosion of profitability in that market.
- The EMEA region peaked in 2023 at 3,531 million US$ but transitioned into a steady decline, ending the period at 2,417 million US$ in 2026.
- Asia Pacific and Latin America (APLA) followed a similar pattern to EMEA, peaking in 2023 at 1,932 million US$ before trending downward to 1,387 million US$ by 2026.
- Brand and Corporate Analysis
- The NIKE Brand remained the dominant earnings driver, although it suffered a significant drop from 8,684 million US$ in 2024 to 5,740 million US$ in 2025, with only a marginal recovery in 2026.
- Converse experienced a critical decline in profitability, falling from a peak of 676 million US$ in 2023 to a near-zero value of 18 million US$ in 2026.
- Corporate expenses fluctuated over the period, peaking as a loss of 2,840 million US$ in 2023, before gradually improving to a loss of 2,023 million US$ by 2026.
- Operational Loss Trends
- Global Brand Divisions consistently reported losses throughout the period. These losses widened from 3,656 million US$ in 2021 to a peak of 4,841 million US$ in 2023, after which they stabilized and slightly decreased to 4,603 million US$ by 2026.
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