Nike, Inc. is a global leader in athletic footwear, apparel, and equipment. Founded in 1964 as Blue Ribbon Sports, it became Nike, Inc. in 1971. The company is headquartered in Beaverton, Oregon, United States. Nike designs and markets innovative products for sports, fitness, and lifestyle. Its iconic Swoosh logo and “Just Do It” slogan are recognized worldwide. Nike operates in over 190 countries with a strong digital and retail presence. It partners with athletes and teams to promote performance and inspiration. Nike continues to invest in innovation, sustainability, and consumer experiences.
Nike sponsors elite athletes and teams across basketball, running, football, soccer, tennis, and other global sports. Its portfolio includes subsidiaries like Converse and Jordan Brand, expanding its influence in the athleticwear market. Nike operates through physical retail, digital platforms, and strategic wholesale partnerships. It continues to invest in sustainability, product innovation, and consumer-focused experiences. Nike’s mission is to bring inspiration and innovation to every athlete in the world.
Nike Fiscal Q2 2026
NIKE (NKE) reported fiscal 2026 second-quarter results with revenues of $12.4 billion, up 1%, above forecasts.
Also, wholesale revenues rose 8% to $7.5 billion, while NIKE Direct revenues declined 8%.
Meanwhile, gross margin fell 300 basis points to 40.6%. Also, diluted earnings per share came in at $0.53, a 32% plunge from last year.
Highlights:
- Revenues were $12.4 billion, up 1%
- NIKE Brand revenues were $12.1 billion, up 1%, driven by North America growth, offset by declines in Greater China and APLA
- Wholesale revenues were $7.5 billion, up 8%, led by North America growth
- NIKE Direct revenues were $4.6 billion, down 8%, with a 14% decline in NIKE Brand Digital and 3% decline in NIKE-owned stores
- Converse revenues were $300 million, down 30%, with declines across all territories
- Gross margin decreased 300 basis points to 40.6%, mainly due to higher tariffs in North America
- Selling and administrative expenses rose 1% to $4.0 billion
- Demand creation expense was $1.3 billion, up 13% from higher brand and sports marketing spend
- Operating overhead expense was $2.8 billion, down 4% from lower wage-related and administrative costs
- The effective tax rate was 20.7% versus 17.9% last year, reflecting changes in earnings mix
- Net income was $0.8 billion, down 32%, with diluted EPS at $0.53, also down 32%
- Inventories were $7.7 billion, down 3%, with fewer units offset by higher product costs from tariffs
- Cash and equivalents plus short-term investments were $8.3 billion, down $1.4 billion due to dividends, bond repayment, share repurchases, and capital expenditures
Nike’s Board Statement
President & CEO Elliott Hill affirmed the company’s confidence in its long-term growth and profitability strategy, emphasizing that Fiscal 2026 remains a pivotal year for decisive action under the “Win Now” initiative. This includes team realignment, strengthened partner relationships, portfolio rebalancing, and on-the-ground execution.
Hill noted that NIKE is gaining momentum with its new sport offense and laying the foundation for the next wave of athlete-centered innovation within an elevated, integrated marketplace.
Executive Vice President & CFO Matthew Friend highlighted the company’s resilience during the second quarter, citing modest top-line reported growth despite operational headwinds stemming from business repositioning. He underscored NIKE’s commitment to making necessary portfolio adjustments and executing real-time decisions to safeguard the long-term vitality of its brands.
Impact of Earnings on Stock
Nike shares fell nearly 10% in pre-market trading after the company warned of a revenue decline this quarter, driven by weakness in Greater China and a steep 30% drop in Converse sales.
Despite modest overall growth of 1% to $12.4 billion in the last quarter, investors remain concerned about underperformance outside North America and running, where Nike has shown progress.
Challenges include excess inventory, declining store traffic in China, and a loss of market share to rivals in the running shoe market. The company is refocusing on key cities like Beijing and Shanghai, revitalizing Converse, and pushing for faster innovation.
However, it has yet to provide longer-term guidance, signaling ongoing efforts to stabilize operations and rebuild retailer relationships.
