Nike released its earnings for the period ending August 31, 2025. The report showed stronger results than expected, giving investors insight into both its business recovery and its ongoing environmental commitments.
The sportswear company is making financial gains while focusing on its long-term goal: reaching net zero emissions. It aims to cut greenhouse gases (GHG) as part of this effort. Let’s look at Nike’s latest earnings, its climate goals, and its most recent progress on emissions.
Profits Under Pressure, but Revenue Holds Strong
Nike reported revenue of $11.72 billion in its fiscal first quarter of 2025. This represented a small increase of about 1% from the previous year and was stronger than analysts had expected.
Net income for the quarter was $727 million, down roughly 31% compared with the same period last year. While profit margins declined, mainly due to tariffs, higher discounts, and shifts in sales channels, the company still beat Wall Street forecasts.
Gross margin fell to just over 42%, showing that Nike continues to face cost pressures across its operations. Still, the earnings results reflected resilience in consumer demand and Nike’s ability to manage challenges in the global retail market.
After the earnings release, Nike’s stock responded positively. Shares rose 1.5%, reflecting investor confidence in the company’s results. The stronger-than-expected revenue, improved profit margins, and lower inventories reassured markets about Nike’s recovery strategy.
This performance marked one of Nike’s best single-day jumps in 2025, showing how financial momentum and clear progress on operations can quickly influence investor sentiment.
Nike’s “Move to Zero” Playbook
Nike’s sustainability strategy is known as “Move to Zero”, which represents its long-term vision of achieving both net-zero carbon emissions and zero waste. The company has set several science-based targets to guide its environmental goals.
- It has also set a 2030 target to cut absolute Scope 1 and 2 emissions by 65% and Scope 3 emissions by 30% compared to 2015 levels.
Scope 1 emissions are from Nike’s own operations. Scope 2 comes from purchased energy, and Scope 3 includes the larger supply chain, like materials, manufacturing, and shipping. Since most of Nike’s carbon footprint comes from its supply chain, Scope 3 reduction is one of the company’s biggest challenges.
Nike also aligns its goals with the Science Based Targets initiative (SBTi), which ensures climate targets match global pathways to limit warming to 1.5°C.
Cutting Carbon: Wins and Stumbles
Nike’s most recent sustainability report shows mixed progress on its emissions. Here are the major ones:
- Scope 1 and 2 emissions:
Nike has cut its Scope 1 and 2 greenhouse gas emissions by 69-73% as of 2023-2024. This is compared to the 2015 baseline. They surpassed their goal of a 65% reduction by 2030. These reductions come from energy efficiency efforts and switching to 100% renewable electricity. This shift is happening in owned and operated facilities in places like North America and Europe.
- Scope 3 emissions:
Nike’s value chain emissions remain the largest part of its carbon footprint, accounting for over 90% of total emissions. Total Scope 3 emissions for 2024 were about 8.2 million metric tons of CO₂e. This marks a 29% reduction since 2020. However, it shows only a small drop from the 2022 and 2023 levels. The company emphasizes material innovation and the use of renewable energy in its supply chain. This is especially true for its Supplier Climate Action Program (SCAP).
- Renewable energy use:
The company uses 100% renewable electricity in its North American and European facilities. Globally, it aims for about 78-80% renewable electricity by 2023-2024. This is achieved through power purchase agreements, onsite solar and wind, and green energy options.
- Transportation:
Nike has reduced air freight by 80% since 2020. This aligns production with shipping schedules. They are increasing ocean freight usage and aim to ship 50% of products by ocean freight by 2025. This change could cut shipping emissions by around 40%. Pilot projects in Europe are testing hydrogen-fueled barges to support this effort.
These figures show that while Nike is reducing emissions from its direct operations, tackling supply chain emissions remains difficult.
Sneakers Go Green: From Waste to Wear
Beyond emissions, Nike is also working on materials and product design. The company has pledged to cut the environmental impact of its shoes and apparel through innovation.
Nike now uses recycled polyester and organic cotton in many products through its “Move to Zero” program, which includes a focus on zero carbon and zero waste. In 2023, almost 40% of Nike’s polyester came from recycled sources, helping reduce reliance on fossil fuels.
The company also reuses waste from manufacturing. More than 90% of Nike’s footwear manufacturing waste is either recycled or reused. The popular “Nike Grind” program turns scrap materials into new products, like shoe soles or sports surfaces.
Nike has also tested circular design models, such as recycling old shoes into new ones. Its refurbishment program extends the life of products by repairing and reselling lightly worn footwear.
Scope 3: Nike’s Toughest Opponent Yet
Nike has made real progress, but challenges remain. Scope 3 emissions are still the largest part of its footprint, and reducing them will require deeper changes in supply chain practices. This includes encouraging suppliers to use renewable energy and improving manufacturing efficiency.
Nike also faces growing consumer and regulatory pressure. Governments in Europe and North America are pushing for stricter climate reporting and accountability. Meeting these standards will test Nike’s ability to deliver on its promises.
Still, Nike has shown commitment by tying executive pay to sustainability goals. The company has also joined global climate coalitions, such as RE100, which aims for 100% renewable electricity.
Bridging the Gap: Offsets for Shipping and Beyond
The company offsets 100% of emissions from U.S. and European e-commerce orders, covering shipping from warehouses to customers. In Oregon, it partners with Ecotrust Forest Management on 28,000 acres of forests that capture about 30% more carbon than standard practices. In Europe, it supports reforestation projects that remove carbon through tree planting.
Nike stresses that carbon credit offsets are only a “bridge” and focuses on using projects verified by independent standards to ensure real and lasting results.
Looking ahead, Nike’s financial growth and climate commitments will remain closely linked. Investors are now paying attention to both quarterly earnings and ESG performance. The company’s ability to reduce emissions while maintaining strong revenue will be key to its long-term success.
Where Performance Meets Purpose
Nike’s latest earnings report shows solid financial momentum, with rising revenue, higher profit, and lower inventory levels. At the same time, the company continues to advance its net-zero journey, with major progress on Scope 1 and 2 emissions and renewable energy adoption.
However, its large Scope 3 footprint remains a challenge, making supply chain transformation essential. With strong climate targets, sustainable material use, and innovation in circular design, Nike is positioning itself as both a sportswear leader and a company working toward climate responsibility.
