NIKE, Inc. Reports Fiscal 2026 Third Quarter Results

• Third quarter revenues were $11.3 billion, flat on a reported basis and down 3 percent on a currency-neutral basis*
• Wholesale revenues were $6.5 billion, up 5 percent on a reported basis and up 1 percent on a currency-neutral basis
• NIKE Direct revenues were $4.5 billion, down 4 percent on a reported basis and down 7 percent on a currency-neutral basis
• Gross margin decreased 130 basis points to 40.2 percent
• Diluted earnings per share was $0.35

"This quarter we took meaningful actions to improve the health and quality of our business. The pace of progress is different across the portfolio and the areas we prioritized first continue to drive momentum," said Elliott Hill, President and Chief Executive Officer, NIKE, Inc. "The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of NIKE."

"We delivered third quarter results in line with our expectations, and our teams continue to execute with discipline," said Matthew Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. "Win Now actions will continue to impact results over the balance of the calendar year, and we remain confident in our ability to position the Company for profitable growth long-term."

Third Quarter Income Statement Review

• Revenues for NIKE, Inc. were $11.3 billion, flat on a reported basis and down 3 percent on a currency-neutral basis.
  • NIKE Brand revenues were $11.0 billion, up 1 percent on a reported basis and down 2 percent on a currency-neutral basis, primarily due to declines in EMEA and Greater China, partially offset by growth in North America.
  • Wholesale revenues were $6.5 billion, up 5 percent on a reported basis and up 1 percent on a currency-neutral basis, primarily due to growth in North America.
  • NIKE Direct revenues were $4.5 billion, down 4 percent on a reported basis and down 7 percent on a currency-neutral basis, due to a 9 percent decrease in NIKE Brand Digital and a 5 percent decrease in NIKE-owned stores.
  • Revenues for Converse were $264 million, down 35 percent on a reported basis and down 37 percent on a currency-neutral basis, due to declines across all territories.
• Gross margin decreased 130 basis points to 40.2 percent, primarily due to higher tariffs in North America.
• Selling and administrative expense increased 2 percent to $4.0 billion.
  • Demand creation expense was $1.1 billion, flat compared to the prior year, as higher sports marketing expense and unfavorable changes in foreign currency exchange rates were offset by lower brand marketing expense.
  • Operating overhead expense was $2.9 billion, up 3 percent, due to employee severance costs and unfavorable changes in foreign currency exchange rates, partially offset by lower other administrative costs.
• The effective tax rate was 20.0 percent compared to 5.9 percent for the same period last year, primarily due to a prior period one-time, non-cash deferred tax benefit provided by U.S. tax regulations related to foreign currency gains and losses.
• Net income was $0.5 billion, down 35 percent, and Diluted earnings per share was $0.35, a decrease of 35 percent.

February 28, 2026 Balance Sheet Review

• Inventories for NIKE, Inc. were $7.5 billion, down 1 percent, primarily reflecting a decrease in units and product mix shifts, partially offset by increased product costs, primarily due to higher tariffs in North America.
• Cash and equivalents and short-term investments were $8.1 billion, down approximately $2.3 billion, as cash generated by operations was more than offset by cash dividends, bond repayment, capital expenditures and share repurchases.

Shareholder Returns

NIKE has a strong track record of returns to shareholders, including 24 consecutive years of increasing dividend payouts. In the third quarter, the Company returned approximately $609 million to shareholders through dividends, up 3 percent from the prior year.

Conference Call