Overview
- Nike reported fiscal Q2 revenue of $12.43 billion and EPS of $0.53, topping estimates, while net income fell about 32% to $792 million.
- Gross margin contracted roughly 300 basis points to about 40.6%, with executives reiterating an estimated $1.5 billion annualized tariff headwind.
- Regional trends diverged as North America grew about 9% to roughly $5.6 billion and Greater China sales dropped about 17% to around $1.42 billion.
- Channel mix shifted with wholesale revenue up 8% to $7.5 billion and Nike Direct down 8% to $4.6 billion; Converse revenue declined 30% to $300 million.
- Shares fell roughly 10% as investors focused on margin pressure and guidance, and several analysts cut price targets despite continued strength in running.