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2h ago

Nike Tops Q1 Estimates as ‘Win Now’ Shows Early Traction

Early traction reflects wholesale and running strength despite higher tariffs, China softness, thinner margins.

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People walk into a Nike store in New York City, New York, U.S., September 4, 2018. REUTERS/Carlo Allegri
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Overview

  • Nike posted Q1 fiscal 2026 revenue of $11.72 billion, up 1%, and earnings of $0.49 per share, beating Wall Street forecasts as shares rose in after-hours trading.
  • Gross margin contracted about 320 basis points to 42.2% on discounting, channel mix and tariffs, with inventories at $8.1 billion, down 2% year over year.
  • Wholesale returned to growth, up roughly 7% to $6.8 billion, while Nike Direct fell 4% to $4.5 billion as digital revenue declined 12%.
  • Regional performance diverged: North America grew 4%, EMEA rose 6% and APLA increased 2%, while Greater China decreased about 9% for a fifth straight quarter.
  • Nike raised its annual tariff cost estimate to about $1.5 billion as executives cautioned recovery will be uneven and signaled a low-single-digit revenue decline for Q2 alongside a running-led ‘Sport Offense’ push.