Fashion
US’ Nike Q1 FY26 revenues edge up, profits drop 31%
The gross margin contracted 320 basis points (bps) to 42.2 per cent, reflecting higher discounts, channel mix, and increased tariffs in North America. Selling and administrative expenses decreased 1 per cent to $4.0 billion, while demand creation expense fell 3 per cent to $1.2 billion due to lower brand marketing. Operating overhead remained flat at $2.8 billion.
Nike Inc has reported revenue of $11.7 billion in Q1 FY26, up 1 per cent YoY, though currency-neutral revenue slipped 1 per cent.
Nike Brand rose 2 per cent, while direct fell 4 per cent and wholesale gained 7 per cent.
Converse dropped 27 per cent.
Net income fell 31 per cent to $727 million, with EPS down 30 per cent.
Margins weakened amid tariffs and discounts.
Nike Brand revenues were $11.4 billion, up 2 per cent reported and flat on a currency-neutral basis, with growth in North America offset by a decline in Greater China. Nike direct revenues fell 4 per cent to $4.5 billion, driven by a 12 per cent decline in digital sales and a 1 per cent drop in Nike-owned retail stores. Wholesale revenues rose 7 per cent to $6.8 billion, with a 5 per cent gain currency neutral. Converse revenues plunged 27 per cent to $366 million, reflecting declines across all territories, Nike said in a press release.
The company posted a net income of $727 million, down 31 per cent, with diluted earnings per share falling 30 per cent to $0.49. The effective tax rate rose to 21.1 per cent from 19.6 per cent last year.
Region-wise, North America saw an increase in its revenue of 4 per cent, led by apparel and equipment. Europe, Middle East, and Africa (EMEA) saw a rise of 6 per cent, driven by footwear and apparel. Greater China was down 9 per cent, reflecting an 11 per cent drop in footwear. Asia Pacific and Latin America went up 2 per cent, boosted by apparel sales.
The company’s inventories declined 2 per cent to $8.1 billion, reflecting fewer units but higher costs from tariffs. Cash, equivalents, and short-term investments fell to $8.6 billion, down $1.7 billion due to dividends, share repurchases, bond repayments, and capital spending, added the release.
“This quarter Nike drove progress through our Win Now actions in our priority areas of North America, Wholesale, and Running,” said Elliott Hill, president and CEO at Nike, Inc. “While we are getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment. I am confident that we have the right focus in Win Now and that our new alignment in the Sport Offense will be the key to maximising Nike, Inc’s complete portfolio over the long-term.”
“I am encouraged by the momentum we generated in the quarter, but progress will not be linear as dimensions of our business recover on different timelines,” said Matthew Friend, executive vice president and chief financial officer at Nike, Inc. “While we navigate several external headwinds, our teams are focused on executing against what we can control.”
Fibre2Fashion News Desk (SG)
Premier Li Qiang, who delivered the report at the opening of the fourth session of the 14th National People’s Congress in Beijing, said the growth target is “well aligned with the country’s long-range objectives through the year 2035 and is broadly in line with the long-term growth potential of China’s economy, with favorable conditions in place for achieving this target.”
China has set a GDP growth target of 4.5–5 per cent for 2026, alongside goals to stabilise employment, manage inflation, maintain grain output and cut emissions.
The plan also preserves flexibility for structural reforms under the 15th Five-Year Plan, aiming to balance steady economic expansion with long-term, high-quality and sustainable development.
Main development targets for 2026 also include a surveyed urban unemployment rate of around 5.5 per cent, creation of over 12 million new urban jobs, a rise in the consumer price index of around 2 per cent, personal income growth in step with economic growth, a basic equilibrium in the balance of payments, grain output of around 700 million tonnes, and a drop of around 3.8 per cent in carbon dioxide emissions per unit of GDP.
Qiang said the targets took into account the need to leave room for structural adjustments, risk prevention and reform in the opening year of the 15th Five-Year Plan (2026–30) period, to lay a solid foundation for improved performance in the coming years. Government at local level should, taking into account their own conditions, make solid efforts to deliver positive outcomes, he added.
Analysts said the 2026 target reflects a pragmatic approach in recognising structural and cyclical challenges facing the world’s second-largest economy, while pursuing reasonable growth in line with high-quality development.
Fibre2Fashion News Desk (JP)
The group recorded an operating result (EBIT) of CHF 9 million (~$11.6 million) compared with CHF 4 million in the previous year, lifting the EBIT margin to 4.2 per cent from 1.7 per cent. Excluding Cosabella, the combined EBIT margin of Calida and Aubade reached 6.7 per cent, approaching the company’s medium-term target range. Operating net profit improved significantly to CHF 7.6 million (~$9.8 million) from CHF 0.5 million a year earlier, Calida Group said in a press release.
Calida Group has reported net sales of CHF 215.9 million (~$278.5 million) in 2025, down 5 per cent YoY.
EBIT rose to CHF 9 million (~$11.6 million) and net profit to CHF 7.6 million (~$9.8 million), supported by strong Calida and Aubade performance.
The group maintained solid liquidity and continued Cosabella repositioning while targeting future profitability improvement.
The group maintained a solid financial base with net liquidity of CHF 25.1 million and an adjusted equity ratio of 67.9 per cent, while free cash flow reached CHF 9.8 million. The board proposed a cash dividend of CHF 0.25 per share, corresponding to a payout ratio of 23 per cent in line with its long-term dividend policy.
“After a challenging first half of 2025, the Calida Group developed positively in the second half and achieved operational improvements on sales and profitability. By deliberately and systematically forgoing discount-driven growth and strategically positioning Calida and Aubade in the premium segment, the brands were strengthened in the long-term. Overall, 2025 was another year defined by a persistently challenging market environment,” said Thomas Stocklin, CEO of the Calida Group.
“Geopolitical uncertainty, US trade and tariff policies, and muted consumer sentiment in our core markets impacted the entire industry. In this environment, the Calida Group has demonstrated strategic discipline and, step by step, is evolving in the desired direction. Today, our group is more agile and efficient. Combined with our financial strength, this positions the Calida Group to pursue well-considered organic as well as external growth opportunities, allowing us to look to the future with confidence,” added Stocklin.
Operationally, the company continued implementing its efficiency-focused strategy by reintegrating functions into individual brands, streamlining group management structures and strengthening capabilities across product management, marketing, operations and sales.
Brand-wise, Calida generated sales of CHF 145.1 million, declining modestly as store traffic softened, although e-commerce growth and a strong Christmas season supported second-half performance. The brand improved its operating contribution margin through higher gross margins and ongoing cost optimisation while reinforcing its premium market positioning.
Aubade recorded sales of CHF 58 million amid weak consumer sentiment in France and the strategic withdrawal from unprofitable channels following the pandemic-driven demand surge. Nevertheless, margin performance strengthened through strict cost management, ongoing rebranding initiatives and progress in expanding export markets, particularly in the United States.
Cosabella reported sales of CHF 12.8 million, extending its negative growth trajectory and contributing higher losses as the brand remains in an intensive repositioning phase under strategic review. The group is targeting a turnaround towards operational break-even in 2026.
Overall, the group indicated that organisational restructuring, inventory optimisation and disciplined channel management enhanced agility and cost efficiency, positioning the company for future growth while aiming to improve group profitability further as Cosabella’s performance stabilises.
Fibre2Fashion News Desk (SG)
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