American sports apparel brand Nike Inc has reported revenue of $11.7 billion in the first quarter (Q1) of fiscal 2026 (FY26), up 1 per cent year-over-year (YoY) on a reported basis and down 1 per cent on a currency-neutral basis.

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)