Nike (NYSE: NKE) reported its fourth-quarter results after market close. The company exceeded analyst expectations for both earnings per share and revenue, although earnings increased compared to a year earlier, while revenue saw a decline.
The firm recorded adjusted earnings of $0.20 per share, surpassing analyst estimates of $0.13 per share by $0.07. In the same period last year, earnings increased by 42.9 percent.
Nike generated quarterly sales of $10.97 billion, exceeding Wall Street estimates of $10.86 billion by $110 million. Revenue for the quarter declined 1.2 percent compared to a year earlier.
Wholesale revenues for the fourth quarter were $6.6 billion, marking a 4 percent increase on a reported basis and a 1 percent increase on a currency-neutral basis.
NIKE Direct revenues for the fourth quarter totaled $4.1 billion, reflecting a 7 percent decline on a reported basis and a 9 percent decline on a currency-neutral basis. Revenues for Converse were $244 million, showing a 32 percent decrease on a reported basis and a 34 percent decrease on a currency-neutral basis.
The gross margin for the fourth quarter increased by 890 basis points to 49.2 percent, benefiting approximately 900 basis points from the expected recovery of the International Emergency Economic Powers Act (IEEPA) tariffs.
For the fiscal year 2026, Nike’s revenues were $46.4 billion, remaining flat on a reported basis and down 2 percent on a currency-neutral basis.
Wholesale revenues for the fiscal year reached $27.5 billion, up 6 percent on a reported basis and 4 percent on a currency-neutral basis. NIKE Direct revenues were $17.7 billion, down 6 percent on a reported basis and 8 percent on a currency-neutral basis. Revenues for Converse were $1.2 billion, declining 31 percent on a reported basis and 32 percent on a currency-neutral basis.
Elliott Hill, President and Chief Executive Officer, stated, “In fiscal 2026, we took decisive actions to strengthen the foundation of NIKE, Inc. and reposition our business for long-term growth. 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.”
