Overview
- Revenue reached $12.43 billion, topping the $12.22 billion consensus, while EPS fell 32% to 53 cents and still beat expectations of 38 cents.
- Gross margin declined by 300 basis points, with tariffs projected to cost about $1.5 billion this fiscal year.
- Wholesale revenue rose 8% to $7.5 billion as Nike rebuilt retail partnerships, while Nike Direct fell 8% to $4.6 billion and Converse declined 30% to $300 million.
- Growth in North America was offset by declines in Greater China and Asia Pacific & Latin America, leaving overall Nike Brand revenue up 1% to $12.1 billion.
- Running demand provided a bright spot as Nike steps up brand investment expected to exceed $5 billion in 2026 and advances its ‘Win Now’ plan, including a new COO and streamlined executive ranks, with no quarterly or full-year guidance issued.