US sportswear retailer Nike reported full-year revenue of $46.39bn for fiscal year 2026, while fourth-quarter (Q4) profit rose on an expected tariff recovery alongside continued weakness in China and Europe.
For Q4 ended 31 May 2026, revenue fell by 1% on a reported basis to $10.97bn and was down 4% on a currency-neutral basis.
Gross margin increased by 890 basis points to 49.2%, mainly due to an approximately 900-basis point benefit from the anticipated recovery of International Emergency Economic Powers Act tariffs, valued at $986m.
Diluted earnings per share increased to $0.72 from $0.14 a year earlier, including a $0.52 benefit related to the same tariff recovery.
Net income rose by just over four times, or 407%, to $1.06bn in the quarter.
Nike Brand revenue was unchanged on a reported basis at $10.72bn but declined 3% on a currency-neutral basis, as falls in Greater China and Europe, Middle East & Africa (EMEA) were offset by growth in North America.
Wholesale revenue rose by 4% to $6.6bn in the quarter, while revenue from Nike Direct – the company's D2C division – decreased by 7% to $4.1bn.
The decline in Nike Direct reflected a 12% drop in Nike Brand Digital and a 7% fall in Nike-owned stores.
Converse brand revenue fell 32% to $244m, with declines across all territories.
By region, North America grew by 3% to $4.83bn in Q4.
Greater China fell by 12% to $1.29bn on a reported basis and declined 17% on a currency-neutral basis, while footwear revenue in the region dropped by 13%.
EMEA revenue edged down 1% to $2.97bn and was down 6% on a currency-neutral basis.
For the full year, revenue was flat on a reported basis at $46.39bn and fell 2% on a currency-neutral basis.
Gross margin increased by 20 basis points to 42.9%.
Net income declined by 3% to $3.10bn, while diluted earnings per share also fell by 3% to $2.10.
Full-year wholesale revenue increased by 6% to $27.5bn, while Nike Direct revenue declined by 6% to $17.7bn.
Converse revenue for the year fell by 31% to $1.2bn.
Nike president and CEO Elliott Hill said: “In fiscal 2026, we took decisive actions to strengthen the foundation of Nike and reposition our business for long-term growth.
“While we continue to face top-line headwinds, we are encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realise our full potential.”
