NIKE, Inc. Reports Fiscal 2026 Second Quarter Results

• Second quarter revenues were $12.4 billion, up 1 percent on a reported basis and flat on a currency-neutral basis*
• Wholesale revenues were $7.5 billion, up 8 percent on a reported and currency-neutral basis
• NIKE Direct revenues were $4.6 billion, down 8 percent on a reported basis and down 9 percent on a currency-neutral basis
• Gross margin decreased 300 basis points to 40.6 percent
• Diluted earnings per share was $0.53

"NIKE is in the middle innings of our comeback. We are making progress in the areas we prioritized first and remain confident in the actions we're taking to drive the long-term growth and profitability of our brands," said Elliott Hill, President & CEO, NIKE, Inc. "Fiscal 26 continues to be a year of taking action through Win Now, including realigning our teams, strengthening partner relationships, rebalancing our portfolio, and winning on the ground. We're finding our rhythm in our new sport offense, and setting ourselves up for the next phase of athlete-centered innovation in an elevated and integrated marketplace."

"In the second quarter, we demonstrated the resilience of our portfolio, delivering modest top-line reported growth while managing headwinds from repositioning our business in a dynamic operating environment," said Matthew Friend, Executive Vice President & Chief Financial Officer, NIKE, Inc. "We are making the shifts required to position our portfolio for a full recovery and driving real-time decisions in service of the long-term health of our brands."

Second Quarter Income Statement Review

• Revenues for NIKE, Inc. were $12.4 billion, up 1 percent on a reported basis and flat on a currency-neutral basis.
  • NIKE Brand revenues were $12.1 billion, up 1 percent on a reported and currency-neutral basis, primarily due to growth in North America, partially offset by declines in Greater China and APLA.
  • Wholesale revenues were $7.5 billion, up 8 percent on a reported and currency-neutral basis, primarily due to growth in North America.
  • NIKE Direct revenues were $4.6 billion, down 8 percent on a reported basis and down 9 percent on a currency-neutral basis, due to a 14 percent decrease in NIKE Brand Digital and a 3 percent decrease in NIKE-owned stores.
  • Revenues for Converse were $300 million, down 30 percent on a reported basis and down 31 percent on a currency-neutral basis, due to declines across all territories.
• Gross margin decreased 300 basis points to 40.6 percent, primarily due to higher tariffs in North America.
• Selling and administrative expense increased 1 percent to $4.0 billion.
  • Demand creation expense was $1.3 billion, up 13 percent, primarily due to higher brand marketing expense and higher sports marketing expense.
  • Operating overhead expense was $2.8 billion, down 4 percent, primarily due to lower wage-related expense and lower other administrative costs.
• The effective tax rate was 20.7 percent compared to 17.9 percent for the same period last year, primarily due to changes in earnings mix.
• Net income was $0.8 billion, down 32 percent, and Diluted earnings per share was $0.53, a decrease of 32 percent.

November 30, 2025 Balance Sheet Review

• Inventories for NIKE, Inc. were $7.7 billion, down 3 percent, reflecting a decrease in units, partially offset by increased product costs, primarily due to higher tariffs in North America.
• Cash and equivalents and short-term investments were $8.3 billion, down approximately $1.4 billion, as cash generated by operations was more than offset by cash dividends, bond repayment, share repurchases and capital expenditures.

Shareholder Returns

NIKE has a strong track record of returns to shareholders, including 24 consecutive years of increasing dividend payouts. In the second quarter, the Company returned approximately $598 million to shareholders through dividends, up 7 percent from the prior year.

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on December 18, 2025, to review fiscal second quarter results. The conference call will be broadcast live via the Internet and can be accessed at https://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through approximately 9:00 p.m. PT, January 8, 2026.

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at https://investors.nike.com. Individuals can also visit https://news.nike.com and follow @NIKE.

Forward-Looking Statements

This press release contains forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.