Nike Stock Earnings Reports

NIKE reported Q1 FY2026 revenue roughly flat (-1% currency-neutral) with underlying momentum in Running (+20%), North America (revenue +4%) and Wholesale (+5%). NIKE Direct declined, driven by NIKE Digital (down 12%), as the company intentionally reduced promotions to reposition digital toward full-price. Gross margin compressed 320 bps to 42.2% due to higher discounts in wholesale and factory stores, increased product costs (including new tariffs), and channel mix headwinds; EPS was $0.49. Management has implemented "win-now" actions and launched a reorganization called the "sport offense"—small cross-functional teams aligned by brand and sport—to sharpen product, storytelling, and go-to-market. Greater China and Sportswear remain areas of weakness requiring more time and investment; Converse is being reset under new leadership. Inventories improved (down 2% overall; down 11% in China), and the spring wholesale order book is up. Tariff headwinds worsened: incremental annual gross cost is now estimated at ~$1.5 billion, and FY26 gross margin headwind from tariffs rose to ~120 basis points. Q2 guide: revenues down low-single-digits, gross margin down ~300–375 bps (including ~175 bps net tariff headwind), SG&A dollars up high-single-digits. Company expects wholesale to modestly grow in FY26, does not expect NIKE Direct to return to growth in FY26, and believes returning to double-digit operating margins is achievable over time but will be delayed by tariffs and uneven geography recoveries.