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Aug 31
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%.
Nike
Nike
Nike Revenue by Segment
Nike Revenue by Geographic Location
Revenue by Segment
Nike Brand Revenue
CapyFin.comConverse Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comGreater China Revenue
CapyFin.comAPLA Revenue
CapyFin.comGlobal Brand Div. Revenue
CapyFin.com 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