Nike has reported flat FY26 revenue of $46.4 billion as North American growth offset weaker demand in China and EMEA.
Wholesale sales increased, while Nike Direct and Converse declined.
Despite lower annual profit, the company advanced its long-term growth strategy.
In Q4, revenue dipped 1 per cent, but tariff recovery sharply lifted gross margin, net income, and earnings per share.
The company said it is focused on restoring sustainable growth by improving profitability, elevating its marketplace presence and executing its long-term strategy.
Nike strengthens foundation for long-term growth
Wholesale revenue for the year increased 6 per cent to $27.5 billion on a reported basis, while Nike Direct revenue declined 6 per cent to $17.7 billion, reflecting lower digital sales and reduced traffic at company-owned stores. Converse revenue fell 31 per cent to $1.2 billion across all territories, Nike said in a press release.
FY26 gross margin improved 20 basis points to 42.9 per cent, while selling and administrative expenses remained unchanged at $16.1 billion. Net income declined 3 per cent to $3.1 billion, with diluted earnings per share (EPS) also falling 3 per cent to $2.10.
“In fiscal 2026, we took decisive actions to strengthen the foundation of Nike, Inc. and reposition our business for long-term growth,” said Elliott Hill, president and CEO, Nike, Inc. “We made meaningful structural improvements to lay the groundwork for our Sport Offense across our team culture, innovative product, brand strength, and how we serve consumers in our countries and cities. While we continue to face top-line headwinds, we are encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realise our full potential.”
Q4 revenue softens amid regional weakness
In the fourth quarter (Q4) of FY26, the company reported revenue of $11 billion, down 1 per cent YoY. Nike Brand revenue was $10.7 billion, remaining flat on a reported basis but declining 3 per cent on a currency-neutral basis as growth in North America was offset by weaker sales in Greater China and EMEA.
Quarterly wholesale revenue rose 4 per cent to $6.6 billion, while Nike Direct revenue fell 7 per cent to $4.1 billion because of lower digital sales and weaker performance at company-owned stores. Converse revenue dropped 32 per cent to $244 million.
Fourth-quarter gross margin increased 890 basis points to 49.2 per cent, primarily due to the expected recovery of $986 million in tariffs under the International Emergency Economic Powers Act (IEEPA), which added approximately 900 basis points to gross margin. Net income increased 407 per cent to $1.1 billion, while diluted earnings per share rose to $0.72, including a $0.52 benefit related to the expected tariff recovery.
“We delivered fourth quarter results in line with our expectations, demonstrating financial discipline in an increasingly challenging operating environment, where sell-through remains challenged,” said Matthew Friend, executive vice president and chief financial officer of Nike. “We are improving the health of our business, managing our product portfolio and investing in marketplace elevation, while adjusting our operating costs for greater efficiency over time.”
Fibre2Fashion News Desk (SG)
