NKENEUTRAL

NKE Gross Margin Analysis

49.2%

Updated 33h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so NKE’s 49.2% means it retains $0.492 of every sales dollar before other expenses.

Sector Performance

53th percentile

NKE

49.2%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

40.2%(Jul 2026)

↑ Improving

📊

Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so NKE’s 49.2% means it retains $0.492 of every sales dollar before other expenses.

That figure sits above the sector median of 44.3%, placing NKE in the 57th percentile of peers, indicating a moderately favorable cost position. The year-over-year change is not available, but the quarter-over-quarter change is +22.4%, showing a sharp recent improvement from the prior value of 40.2%. A high margin combined with a strong quarterly gain suggests reduced near-term cost pressure and potential for better profitability, though the missing yearly comparison limits confidence in the durability of that shift. This metric supports the neutral verdict: the level is above average, but the unclear annual trend and percentile only in the upper half of peers do not justify a more bullish stance. It leans slightly positive, yet not enough to alter the overall neutral outlook.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.