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Nike blew previous the Avenue’s expectations in its newest earnings report. The sportswear big disclosed fiscal first-quarter 2026 earnings of $0.49 per share on income of $11.7 billion after the bell Tuesday. That represents a 1% leap in income on a “reported foundation” from the identical interval final yr, Nike mentioned. Nonetheless, the corporate’s internet revenue tanked 31% to $700 million.
Jefferies analysts anticipated an EPS of $0.29 on income of about $11.2 billion for the quarter, which ended on Aug. 31. Zacks Analysis , in the meantime, predicted $0.28 EPS with $11 billion in gross sales, and FactSet’s consensus estimate was related — analysts projected an EPS of $0.27 on income of $11 billion, per Barron’s . Each Zacks and Barron’s mentioned this is able to point out a couple of 5% decline in gross sales.
Nike Model introduced in $11.4 billion in income, the corporate mentioned, pointing to a “currency-neutral progress in North America” that was “offset by a decline in Larger China.” Nike Direct income got here in at $4.5 billion — a 4% drop on a reported foundation due to a 12% drop in Nike Model Digital. Wholesale revenues have been $6.8 billion, a 7% leap on a reported foundation. Income for Nike’s Converse model noticed a 27% drop on a reported foundation.
“This quarter, Nike drove progress via our Win Now actions in our precedence areas of North America, Wholesale, and Operating,” CEO Elliott Hill mentioned in a press launch. “Whereas we’re getting wins below our belt, we nonetheless have work forward to get all sports activities, geographies, and channels on an analogous path as we handle a dynamic working atmosphere.”
The corporate’s gross margin dropped 320 foundation factors to 42.2% — primarily from “decrease common promoting worth,” which Nike mentioned displays “increased reductions” plus “increased tariffs in North America.” Jefferies had projected a gross margin lower of 350 foundation factors.
Nike reported a 2% drop in inventories to $8.1 billion in contrast with final yr. The corporate mentioned the dip in items was partially offset by elevated product prices from increased tariffs. Jefferies analysts had anticipated a “modest beat”; it projected Nike would present a rebound because of its innovation and retail momentum — plus a “cleaner market” — regardless of “tariff and stock headwinds.” The agency’s analysts mentioned to “simply purchase it” forward of the earnings launch.
Matthew Good friend, Nike’s govt vice chairman and chief monetary officer, mentioned within the press launch that progress gained’t be “linear” as elements of Nike’s enterprise “recuperate on completely different timelines.” He added, “Whereas we navigate a number of exterior headwinds, our groups are centered on executing in opposition to what we are able to management.”
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