Nike has warned that sales are likely to continue falling through to the end of fiscal 2026 (FY26), pointing to ongoing softness in Greater China and weaker performance in parts of its business.
The US sportswear retailer expects overall sales to decrease by low single digits over the period, including a projected fall of between 2% and 4% in the fourth quarter.
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Within this outlook, revenues in Greater China are forecast to drop by around 20% in the same quarter.
This follows a 7% decline in the region to $1.62bn in the most recent reporting period.
While modest growth is anticipated in North America, this is expected to be offset by declines in both Greater China and the Converse business.
Nike attributed the continued pressure in China to lower sell-in levels and steps being taken to streamline the marketplace.
Gross margin is projected to improve sequentially but remain down by approximately 25 to 75 basis points.
This includes an estimated 250 basis point impact from higher tariffs in North America.
The guidance follows Nike’s third-quarter results for FY26, where revenues reached $11.27bn.
This was flat on a reported basis and down 3% on a currency-neutral basis.
Wholesale revenues increased by 5% to $6.5bn, while Nike Direct revenues declined by 4% to $4.5bn.
Gross margin fell by 130 basis points to 40.2%.
Net income dropped by 35% to $520m, with diluted earnings per share also declining by 35% to $0.35.
Nike president and CEO Elliott Hill said: “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 prioritised first continue to drive momentum.”
Regionally, North America recorded a 3% increase in revenue to $5.02bn, supported by a 6% rise in footwear sales.
Europe, the Middle East, and Africa (EMEA) revenues grew by 2% to $2.87bn, though they were down 7% on a currency-neutral basis. Meanwhile, Asia Pacific and Latin America saw a 1% increase to $1.49bn.
By segment, Nike Brand revenues totalled $11.01bn, representing a 1% increase on a reported basis.
In contrast, Converse revenues fell sharply by 35% to $264m, with declines reported across all regions.
The results underscore an uneven regional performance, with gains in North America counterbalanced by ongoing challenges in Greater China.
