NKE · NIKE, Inc.

NIKE, Inc. reported third-quarter fiscal 2026 results that showed flat revenues of $11.3 billion on a reported basis, though currency-neutral revenues declined 3%. The company experienced mixed performance across segments, with NIKE Brand revenues up 1% on a reported basis but down 2% currency-neutral, driven by declines in EMEA and Greater China partially offset by North American growth. Wholesale revenues increased 5% on a reported basis, while NIKE Direct revenues declined 4%, with digital sales falling 9% and owned stores down 5%. Converse revenues dropped 35% due to declines across all territories. Profitability was pressured as gross margin contracted 130 basis points to 40.2%, primarily attributed to higher tariffs in North America. Selling and administrative expenses rose 2% to $4.0 billion, driven by employee severance costs and unfavorable currency exchange rates. The effective tax rate increased significantly to 20.0% from 5.9% due to a prior period one-time deferred tax benefit. Net income declined 35% to $0.5 billion, with diluted EPS at $0.35. Management commentary from President and CEO Elliott Hill emphasized actions to improve business health and quality, noting progress varies across the portfolio. CFO Matthew Friend stated results were in line with expectations and that 'Win Now' actions will continue impacting results through the calendar year, expressing confidence in long-term profitable growth positioning. The balance sheet showed cash and equivalents decreased to $6.7 billion from $8.6 billion, while inventories declined 1% to $7.5 billion. The company returned $609 million to shareholders through dividends during the quarter.