Overview
- Nike reported revenue of $11.72 billion and adjusted EPS of $0.49 for fiscal Q1 2026, topping estimates, while net income fell 31% to $727 million and gross margin contracted 320 basis points to 42.2%.
- Management raised its annual tariff cost outlook to about $1.5 billion, guiding to roughly a 120‑basis‑point hit to full‑year gross margin.
- Channel mix shifted as Wholesale grew 7% to $6.8 billion and Nike Direct declined 4% to $4.5 billion, including a 12% drop in digital; inventories fell 2% to $8.1 billion.
- Regional results diverged with North America up 4%, EMEA up 6% and APLA up 2%, while Greater China declined about 9% year over year.
- Guidance calls for low‑single‑digit revenue declines and materially lower margins next quarter, with management noting DTC is unlikely to return to growth in fiscal 2026 even as running and wholesale show momentum.