Nike has lowered its guidance for the upcoming financial year as it has reported a flat performance in sales.

Nike King's Road

Nike faces growing competition from brands such as On and Hoka

The sportswear giant reported full-year revenues of $51.4bn (£40.6bn) up marginally from $51.2bn (£40.5bn) the year prior.

Revenues for the Nike brand, Nike Direct and wholesale were all up 1% $49.3bn (£39bn), $21.5bn (£17bn) and $27.8bn (£21.9bn) respectively.

Gross profit for the period rose 3% to $22.8bn (18bn).

Revenues for the fourth quarter were down 2% to $12.6bn (£9.9bn), with Nike Direct revenues down 8% to $5.1bn (£4bn) and wholesale revenues up 5% to $7.1bn (£5.6bn).

Nike said it expects a 10% drop in quarterly revenue due to growing competition from brands On and Hoka. It has lowered its outlook for the next financial year.

Nike president and chief executive John Donahoe said: “We are taking our near-term challenges head-on while making continued progress in the areas that matter most to Nike’s future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace.

”I’m confident that our teams are lining up our competitive advantages to create greater impact for our business.”

Nike executive vice president and chief financial officer Matthew Friend added: “We are driving better balance across our portfolio. While we are encouraged by our progress, our fourth-quarter results highlighted challenges that have led us to update our fiscal 2025 outlook. 

“We are taking actions to reposition Nike to be more competitive, and to drive sustainable, profitable long-term growth.”