US sportswear retailer Nike reported its fiscal 2026 second-quarter (Q2) financial results for the three months ended 30 November 2025, posting revenues of $12.42bn.
Revenue increased 1% on a reported basis and was flat on a currency-neutral basis.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Net income for the quarter fell 32% to $792m, with a diluted earnings per share (EPS) of $0.53.
The company’s gross margin narrowed by 300 basis points to 40.6%, a decline it attributed mainly to increased tariffs in North America.
Wholesale revenues increased 8% to $7.5bn on both a reported and currency-neutral basis, driven mainly by growth in North America.
In contrast, revenues at the company direct to customer business, Nike Direct, declined to $4.6bn, down 8% on a reported basis and 9% on a currency-neutral basis.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThis reflected a 14% drop in Nike Brand Digital sales and a 3% reduction in revenues from Nike-owned stores.
Nike Brand revenues reached $12.1bn, up 1% on both a reported and currency-neutral basis.
Gains in North America helped lift the total, though these were partially offset by weaker performance in Greater China and the APLA region.
Converse revenues declined sharply to $300m, down 30% on a reported basis and 31% on a currency-neutral basis, with decreases registered across all markets.
Selling and administrative costs edged up 1% to $4.03bn.
Within this, demand creation expense increased 13% to $1.3bn, which the company said was driven by higher spending on brand and sports marketing.
Operating overheads fell 4% to $2.8bn, mainly due to reduced wage-related and administrative costs.
Inventories as of 30 November 2025 were $7.7bn, down 3%.
The company cited lower unit volumes, partly counterbalanced by higher product costs tied to increased North American tariffs.
Cash, cash equivalents, and short-term investments stood at $8.3bn, about $1.4bn lower than the prior-year period, as operating cash flows were more than offset by dividend payments, bond repayments, share buybacks and capital spending.
Nike president and CEO Elliott Hill said: “Nike is in the middle innings of our comeback. Fiscal [year] 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.”
Nike, headquartered near Beaverton, Oregon, designs, markets and distributes athletic footwear, apparel, equipment and accessories worldwide.
