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)
Global growth is forecast at roughly 3 per cent over the medium term, down from 3.7 per cent before the COVID-19 pandemic, she noted.
“Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” IMF managing director Kristalina Georgieva recently said.
She suggested Asian economics to deepen internal trade to include more final goods and more services and press forward with reforms to strengthen the service sector and access to finance.
She was addressing the opening event of the Milken Centre for Advancing the American Dream (MCAAD) in Washington, DC.
She suggested Asian economics to deepen internal trade to include more final goods and more services and press forward with reforms to strengthen the service sector and access to finance. IMF’s analysis suggests a push for more regional integration—notably by lowering nontariff barriers—could raise gross domestic product (GDP) by 1.8 per cent in the long run, she noted.
“Comprehensive business-friendly reforms, combined with progress in building the Continental Free Trade Area, could lift the real GDP per capita of the median African country by over 10 per cent,” she observed on Sub-Saharan Africa.
She recommended Europe to consider appointing a ‘single market czar’ with real authority to drive reforms forward. “Remove border frictions in the labour market, goods and services trade, energy and finance. Build a single European financial system. Build an energy union. Complete your project. And catch up with the private sector dynamism of the US,” she added.
Fibre2Fashion News Desk (DS)
Published
October 10, 2025
Occasion wear brand Kalki Fashion has launched a 6,000 square foot flagship store in Mumbai’s Kala Ghoda with a dedicated bridal segment, featuring several private suites, and an exclusive ‘Kala Ghoda’ capsule line.
“Opening in Kala Ghoda isn’t just about unveiling a flagship, it’s about creating a space for you,” said Kalki Fashion’s CEO Saurabh Gupta in a press release. “This store is imagined as a cultural landmark where every detail is designed to make you feel part of something timeless.”
The store is housed within a heritage building and contrasts its original façade with a contemporary style interior, designed to give shoppers the feeling of traversing a gallery. With zones dedicated to bridalwear, occasion-wear, and menswear, Kalki Fashion proposes a curated shopping experience tailored to the entire wedding party.
The bridal area features family-sized private suites for fittings and trousseau planning with floor-to-ceiling mirrors offering a theatrical touch. The store also integrates technology with digital styling tools and virtual consults for brides based abroad as well as natural-light try-on suites and personalisation studios. Exclusively available at this location, Kalki’s new Kala Ghoda limited edition capsule line features garments inspired by the Mumbai district’s signature art and architecture, translating arches, heritage motifs, and gallery-inspired details into wearable looks.
“Kala Ghoda, with its blend of heritage and modernity, reflects who our customers are, rooted in tradition yet always evolving,” said Gupta. “In many ways, it feels like coming home, to Bombay, to the people, and to the stories that made us who we are.”
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Prime Minister Pham Minh Chinh stated that Hanoi is pursuing trade deals aimed at cushioning the economy from tariff pressures imposed by its largest export market. The announcement follows estimates by the United Nations Development Programme (UNDP), which warned that US duties could reduce Vietnam’s exports to the US by as much as 20 per cent, making it the most affected country in Southeast Asia.
Vietnam expanded its export footprint from 104 countries in 2024 to 132 in 2025, even as plans are underway to pursue FTAs with new partners to cushion the impact of tariffs.
According to UNDP estimates, US duties could slash Vietnam’s exports to the US by up to 20 per cent, making it the most heavily impacted country in Southeast Asia from US tariff measures.
The US has imposed tariffs of 20 per cent on most Vietnamese goods and up to 40 per cent on items transhipped via Vietnam.
In response, Hanoi is reportedly targeting the conclusion of free trade agreements with Latin America’s Mercosur bloc and the Gulf Cooperation Council (GCC) by the end of 2025.
These moves are seen as a strategic attempt to both offset the immediate fallout from US trade actions and broaden Vietnam’s global footprint.
While FTAs are a key pillar of the response strategy, experts underline the importance of market diversification to hedge against rising geopolitical and policy risks and Vietnam’s textile and apparel sector—a core component of its export economy—has already taken steps in this direction.
According to the Vietnam Textile and Apparel Association (VITAS), the industry has expanded its export reach from 104 destinations in 2024 to 132 in 2025.
Vietnamese firms are now delivering high-quality garments to markets such as China, Russia, the Commonwealth of Independent States (CIS), and across ASEAN.
In tandem with geographic diversification, to comply with increasingly stringent standards in key export markets, Vietnamese garment manufacturers are also accelerating shifts toward green production and sustainable development. Firms are investing in advanced machinery, upgrading workforce capabilities, and moving away from traditional cut-make-trim (CMT) models to higher-value production formats such as free-on-board (FOB), original design manufacturing (ODM), and original brand manufacturing (OBM).
So, despite headwinds on account of US tariffs and global trade volatility, industry stakeholders remain optimistic about the sector’s growth potential as companies actively expand into new markets to drive exports and hedge against geopolitical risks.
Fibre2Fashion News Desk (DR)
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