American sportswear giant Nike, Inc has reported a decline in the third quarter (Q3) results reflecting mixed regional trends as China remains a concern and the company struggles with pressure in its direct-to-consumer (DTC) segment, even as wholesale revenues outperformed.

The company reported revenue of $11.3 billion in Q3 FY26 ended February 28, posting a 3 per cent year-on-year (YoY) decline. The weakness in digital and owned retail channels was partially offset by Nike Brand revenues posting marginal growth.

Nike has reported decline in Q3 FY26, with revenue at $11.3 billion, down 3 per cent YoY, reflecting DTC weakness and mixed regional trends.
Wholesale growth and modest Nike Brand gains provided some support.
Margins contracted but remained better than expected, while net income fell 35 per cent.
China weakness and broader cost pressures weighed on EBIT across regions.

“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,” said Elliott Hill, president and CEO, Nike. “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 CFO, Nike. “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.”

Nike Brand sees modest growth amid regional headwinds

Nike Brand revenues were $11 billion in Q3, up 1 per cent, driven by strength in North America and declines in Europe, Middle East and Africa (EMEA) and China, Nike said in a press release.

Wholesale revenues were up 5 per cent, primarily due to growth in North America, while Nike direct revenues fell 4 per cent to $4.5 billion amid weaker digital sales and store performance. Converse revenues declined sharply by 35 per cent to $264 million across all markets.

The gross margin contracted by 130 basis points to 40.2 per cent, majorly due to higher tariffs in North America and increased product costs.

Net income dropped 35 per cent to $520 million, with diluted earnings per share (EPS) also falling 35 per cent to $0.35. This suggests tariff and cost pressures were less severe than anticipated.

China’s weak profitability weighs on regional performance

The performance in China remained weak, with EBIT falling 9 per cent to $480 million, underscoring continued demand softness, with country’s total revenue standing at $1.62 billion, a decline of 7 per cent YoY. Asia Pacific and Latin America also declined 4 per cent to $332 million.

North America EBIT declined to $981 million from $1,103 million, signalling margin pressure even as the region supported revenue growth. EMEA showed relative resilience, rising 7 per cent to $515 million, making it one of the few bright spots.

Global brand divisions saw a sharp 20 per cent drop, while Converse EBIT fell 11 per cent, reflecting brand-specific challenges. At the group level, total Nike Brand EBIT declined 14 per cent, contributing to 18 per cent fall in total EBIT to $635 million.

Fibre2Fashion News Desk (SG)

Africa’s real gross domestic product (GDP) growth is projected to stabilise at 4.3 per cent in 2026 and grow further to 4.5 per cent in 2027, according to the African Development Bank (AfDB) Group’s 2026 Africa Macroeconomic Performance and Outlook (MEO) report.

Despite ongoing regional and global headwinds, Africa continues to demonstrate impressive resilience and maintains its status as a global growth frontier, it noted.

Africa’s real GDP growth is projected to stabilise at 4.3 per cent in 2026 and grow further to 4.5 per cent in 2027, an African Development Bank report said.
Growth in 2025 exceeded 5 per cent in 22 African nations and topped 7 per cent in six.
Despite regional and global headwinds, Africa continues to demonstrate impressive resilience and maintains its status as a global growth frontier, it noted.

Africa outpaced the global average in 2025 as its real GDP surged to 4.2 per cent, up from 3.1 per cent in 2024, comfortably eclipsing the 3.1-per cent world average, the report said.

A key finding in the report is the ‘broad-based’ surge, with growth exceeding 5 per cent in 22 African countries, and topping 7 per cent in six, bolstered by easing inflationary pressures, improved macroeconomic management and favourable agricultural conditions, an AfDB release noted.

Twelve of the 20 fastest-growing economies in the world last year were African.

East Africa maintained its lead last year as the continent’s fastest-growing region, posting 6.4-per cent GDP growth, with its expansion driven by the surge in growth performances of 9.8 per cent in Ethiopia, 7.5 per cent in Rwanda and 6.4 per cent in Uganda.

Africa’s GDP per capita growth rose from 0.9 per cent in 2023 to 1.1 per cent in 2024 and 1.9 per cent in 2025, but still remains too low to propel rapid poverty reduction.

Inflation is declining, with average inflation estimated at 13.6 per cent in 2025, down from 21.8 per cent in 2024; further reductions are projected for 2026 and 2027.

Foreign direct investment rebounded sharply in 2024, rising by more than 75 per cent to reach $97 billion.

Remittance flows to the continent rebounded strongly in 2024, rising by more than 14 per cent to $104.6 billion—offsetting the 6-per cent decline recorded in 2023 and making remittances the largest single source of external non-debt financing, surpassing foreign portfolio investment.

Fibre2Fashion News Desk (DS)

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