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)
Following earlier increases in purified terephthalic acid (PTA), melt and PSF, Indian producers have now raised PFY prices. POY, FDY and PTY prices have been increased by ****;* per kg across all deniers and lustres with effect from March *, reflecting rapid cost pass-through amid heightened volatility in crude-linked value chains, according to the market sources.
In the previous weekly revision effective February **, ****, PTA was increased by ****;*.** per kg to ****;**.** per kg, while monoethylene glycol (MEG) was retained at ****;**.** per kg. Polyester melt prices were raised by ****;*.** per kg to ****;**.** per kg. Downstream PSF prices were also revised upward by ****;*.** per kg from March *.
May 2026 cotton settled at 64.59 cents per pound, down 1.02 cents. This marked the lowest settlement price for May contract since February 20, effectively erasing all gains made over that period.
Cotton futures on Intercontinental Exchange (ICE) fell over 1 per cent, with May 2026 settling at 64.59 cents/lb, the lowest since Feb 20, amid Middle East tensions and a stronger US dollar.
Rising inventories and risk aversion pressured prices.
Speculators cut net shorts, while crude oil surged.
ICE cotton traded mixed in early Indian hours today.
Total trading volume for the session came in at 73,225 contracts. ICE-certified deliverable No. 2 cotton inventory rose to 126,178 bales as of February 26, up from 119,457 bales the previous trading day.
The US dollar climbed to its highest level in over a month, making dollar-denominated commodities like cotton more expensive for international buyers and reducing export demand.
Market analysts stated that the Middle East conflict is putting significant pressure on cotton and that a broader risk-aversion tone is affecting the market.
On March 2, Iran continued launching attacks on US military bases across multiple countries in the Middle East, with explosions reported in several locations. An advisor to the Iranian Islamic Revolutionary Guard Corps commander announced that the Strait of Hormuz had been closed, with Iran threatening to strike any vessels attempting to pass through it.
US President Trump indicated that military action against Iran could last four to five weeks, while also expressing readiness for operations to extend considerably longer.
Major Wall Street indices declined on Monday as the conflict raised fears of disrupted global trade routes and renewed inflationary pressures. Analysts warned that investors appear to be rebuilding short positions in cotton, suggesting continued downward price pressure in the near term. The earlier May contract low of 62.86 cents per pound as a key support level that could be tested again.
CFTC data released the prior Friday showed that speculators reduced their net short positions in ICE cotton futures and options by 26,508 contracts in the week ending February 24, bringing net shorts to 48,922 contracts.
International crude oil and natural gas prices surged sharply on Monday following US and Israeli strikes on Iran, with retaliatory actions forcing the closure of several energy facilities in the region.
This morning (Indian Standard Time), ICE cotton for May 2026 was traded at 64.75 cents per pound (up 0.16 cent), cash cotton at 62.59 cents (down 1.02 cent), the March 2026 contract at 62.59 cents ((down 1.02 cent)), the July 2026 contract at 66.75 cents (up 0.14 cent), the October 2026 contract at 68.18 cents (down 0.49 cent) and the December 2026 at 69.04 cents (up 0.12 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
If the US administration imposes a 15-per cent levy, the US ETR would rise to 11.3 per cent.
President Donald Trump reinstated tariffs immediately following the US Supreme Court’s February 20 ruling that invalidated the reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The new blanket 10-per cent tariff rate is authorised under Section 122 of the Trade Act of 1974 and expires in 150 days unless extended by Congress.
The 10-per cent blanket reciprocal tariff imposed by the US on most trading partners has reduced the US effective tariff rate (ETR) to 9.4 per cent from 12.7 per cent, Fitch Ratings said.
If a 15-per cent levy is imposed, the ETR would rise to 11.3 per cent.
China has the highest ETR among trading partners, followed by Vietnam, Japan and Brazil.
China’s ETR is around 19 per cent from 29 per cent earlier.
Section 122 permits a maximum rate of 15 per cent but does not allow for tariff adjustments for individual countries.
Prior to the court decision, China was subject to two reciprocal tariffs: a fentanyl tariff of 10 per cent that applied to all imports and a 10-per cent reciprocal tariff on an import base subject to carveouts. The two tariffs have been consolidated into the 10-per cent blanket tariff, reducing China’s ETR to around 19 per cent from 29 per cent, Fitch said in a release.
China still has the highest ETR among major trading partners, followed by Vietnam, Japan and Brazil. Of the United States’ 31 largest trading partners, 26 will see their ETRs decline. Brazil benefits the most, with its ETR decreasing by 18 percentage points (pp) to 11 per cent from 29 per cent.
ETRs for most countries largely remain unchanged following the switch in tariff regimes, and no country will see an increase in its ETR if the Section 122 tariff rate remains at 10 per cent.
Fibre2Fashion News Desk (DS)
Demi Lovato, Keke Palmer question relationship with older men
Iran Conflict: Middle East tensions: Global insurers exit Iranian waters as conflict deepens – The Times of India
Barcelona gets bigger spending cap, opens door on new signings
-
Politics6 days agoWhat are Iran’s ballistic missile capabilities?
-
Politics6 days agoUS arrests ex-Air Force pilot for ‘training’ Chinese military
-
Business7 days agoHouseholds set for lower energy bills amid price cap shake-up
-
Sports1 week agoTop 50 USMNT players of 2026, ranked by club form: USMNT Player Performance Index returns
-
Sports6 days agoSri Lanka’s Shanaka says constant criticism has affected players’ mental health
-
Business7 days agoLucid widely misses earnings expectations, forecasts continued EV growth in 2026
-
Fashion5 days agoPolicy easing drives Argentina’s garment import surge in 2025
-
Fashion5 days agoTexwin Spinning showcasing premium cotton yarn range at VIATT 2026