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Aug 31, 2025
Nike Q1 2026 Earnings Report
Nike reported mixed performance with solid wholesale growth offset by weaker direct sales and margin pressure.
Key Takeaways
Nike posted a modest revenue increase in Q1 FY26 but faced a significant decline in net income and gross margin, primarily due to higher discounts and weaker digital sales.
Revenue reached $11.72 billion, up 1% YoY.
Net income declined to $727 million, down 31% YoY.
Wholesale revenue grew 7%, while Nike Direct revenue fell 4%.
Gross margin compressed by 320 basis points to 42.2%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Nike anticipates continued volatility across markets with a focus on executing its 'Win Now' priorities amid a dynamic retail landscape.
Positive Outlook
- Wholesale momentum remains strong.
- North America showed growth across all categories.
- Cost controls reduced selling and administrative expenses.
- Progress in key sports and product categories.
- Strategic focus on portfolio alignment through 'Sport Offense'.
Challenges Ahead
- Direct sales, especially digital, declined notably.
- Gross margin was pressured by increased discounts and tariffs.
- Greater China revenues decreased year-over-year.
- Net income and EPS declined significantly.
- Global demand recovery remains uneven across segments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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