NKENEUTRAL

Gross Margin

49.2%

Updated 10h ago

Sector Performance

57th percentile

NKE

49.2%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying for the direct costs of producing its goods; Nike’s current 49.2% means it retains $0.492 from each dollar of sales.

This is above the sector median of 44.7%, placing Nike in the 57th percentile among its peers — slightly better than average but not a standout. Year-over-year change is not available, but quarter-over-quarter the margin rose by 22.4%, jumping from 40.2% to 49.2% in the most recent period. The combination of a level above the sector median and a sharp quarterly improvement suggests a near-term opportunity from cost control or pricing power, though the lack of a yearly trend limits the ability to assess sustainability. This metric supports the overall NEUTRAL verdict: the gross margin is healthy and improving, but without a longer historical or year-over-year comparison, it does not justify a bullish or bearish stance on its own.

Frequently Asked Questions

What does the Gross Margin tell investors about NKE?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are NKE's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.