Nike Stock Earnings Reports

NIKE reported modest Q2 fiscal 2026 progress as management advances its "WinNow" actions and a new "sport offense" to reshape product mix, restore brand premium, and drive sustainable growth. Revenue was up 1% reported (flat currency-neutral); wholesale grew 8% while NIKE Direct declined 9% (NIKE Digital -14%). North America led the recovery (+9% revenue, wholesale +24%) driven by running, basketball, kids and improved wholesale partnerships. Classics footwear franchises are being intentionally downsized (on track to be >$4B lower from peak), which creates near-term top-line headwinds but a healthier long-term mix. Greater China remains the biggest near-term challenge (Q2 revenue -16%, EBIT -49%) due to overpromotion, aged inventory and weak store traffic; management is executing a market-specific reset. Gross margin contracted ~300 bps to 40.6%, driven by higher product costs (notably new U.S. tariffs) and China obsolescence; tariffs represent a material structural headwind (management cites ~$1.5B annualized product cost, ~320 bps gross margin headwind before mitigation). Inventory improved overall (down 3% YoY; units down high-single-digits), with North America and EMEA in healthier positions. EPS was $0.53. For Q3, NIKE guides revenues down low-single-digits, gross margin down ~175–225 bps (note management said excluding the ~315 bp tariff impact gross margin would expand), SG&A dollars up low-single-digits, and expects a modest FX benefit (~+3 pts). Management reiterated a clear strategic focus on product innovation (running, football, NIKE Mind, Aerofit, Thermofit), rebuilding local sales/marketing resources, margin restoration and operational efficiency, and said geographies now report directly to the CEO to accelerate decision-making.