NIKE announced the multi-year 'Pace' enterprise program in October 2026 (a subsequent event), building on the March 2026 cost realignment plan. Pace includes reorganizing the company into three geographies (Americas, APGC, EMEA) in fiscal 2028, establishing a new campus in India, supply-chain optimization, and organizational streamlining. The company expects approximately $1.0 billion in pre-tax charges (in addition to ~$0.3 billion of severance already recognized in FY2026), with ~$0.3 billion to be recorded in FY2027 and the remainder through FY2031, and anticipates ~$2.5 billion in cumulative savings through FY2031.
Q1 FY2027 revenues fell 5% on a currency-neutral basis to $11.2 billion. Greater China was the largest drag, down 26% currency-neutral (footwear units -26%, wholesale -31%, digital -28%, stores -14%) amid declining store traffic, elevated promotional activity, and higher marketplace inventory. EMEA declined 5% (digital -26%), Converse fell 28% (unit sales -34%), while North America grew 2% (wholesale +9%). NIKE Direct overall was down 9% currency-neutral, with digital -13% and store sales -5%.
Management disclosed ongoing operational actions across product, marketplace, and brand management: reducing supply of certain footwear to rebalance the portfolio, repositioning NIKE Brand Digital as a full-price platform, liquidating inventory through increased markdowns and higher wholesale returns/discounts, and reinvesting in wholesale distribution. Additional actions related to NIKE Sportswear and Jordan Brand are expected to extend beyond fiscal 2027; Converse is undergoing a strategic reset of the brand and marketplace expected to continue throughout fiscal 2027; Greater China remediation actions are expected to extend beyond fiscal 2027.
Gross margin expanded 60 basis points to 42.8%, primarily from lower warehousing and logistics costs (~90 bps) and favorable FX/hedge results (~40 bps), partially offset by higher third-party royalties (~40 bps), lower average selling price from discounts and channel mix (~30 bps), and a 210-bps contraction at Converse. Demand creation expense rose 5% to $1.25 billion on higher brand marketing investment in key sports events; operating overhead fell 6% to $2.66 billion on lower wage and administrative costs.
Inventories increased 5% to $7.8 billion (substantially all finished goods) primarily due to shifts in product mix. The company returned ~$0.6 billion to shareholders via dividends (quarterly rate of $0.41 per share) and made no share repurchases during the quarter under the $18 billion buyback program, which the Board reapproved in June 2026 to continue without a fixed expiration; 124.4 million shares (approximately $12.1 billion) had been repurchased at an average price of $97.57 as of August 31, 2026. During the quarter, NIKE also paid substantially all of the remaining ~$243 million severance liability from the prior year's restructuring.
(Filed on July 15, 2026)
-1.1%
49.2%
$7.6B
FOLLOWING THE FEBRUARY 20, 2026 U.S. SUPREME COURT RULING THAT IEEPA TARIFFS WERE UNAUTHORIZED, NIKE RECOGNIZED A $986 MILLION BENEFIT IN COST OF SALES DURING Q4 FISCAL 2026 ($965M NORTH AMERICA, $21M CONVERSE), LARGELY OFFSETTING IEEPA TARIFF COSTS INCURRED DURING FISCAL 2026. AS OF MAY 31, 2026, $302M HAD BEEN RECEIVED AND $684M WAS OUTSTANDING IN ACCOUNTS RECEIVABLE; SUBSEQUENTLY, SUBSTANTIALLY ALL OF THE REMAINING RECEIVABLE WAS COLLECTED.
NIKE CONTINUED ITS PORTFOLIO-LEVEL STRATEGIC RESET ACROSS THREE AREAS: PRODUCT MANAGEMENT (ACCELERATING INNOVATION, REDUCING SUPPLY OF CERTAIN FOOTWEAR TO REBALANCE THE PORTFOLIO), MARKETPLACE MANAGEMENT (REPOSITIONING NIKE BRAND DIGITAL AS A FULL-PRICE PLATFORM, REINVESTING IN WHOLESALE, LIQUIDATING INVENTORY VIA MARKDOWNS AND HIGHER WHOLESALE RETURNS), AND BRAND MANAGEMENT (INCREASING DEMAND-CREATION AND SPORTS-MARKETING INVESTMENT). MANAGEMENT TARGETS COMPLETION OF THESE ACTIONS BY THE END OF DECEMBER 2026, NOTING NORTH AMERICA HAS MADE THE MOST PROGRESS WHILE GREATER CHINA AND CONVERSE WILL TAKE LONGER.
GREATER CHINA IS EXPERIENCING DECLINING STORE TRAFFIC, ELEVATED PROMOTIONAL ACTIVITY, AND HIGHER MARKETPLACE INVENTORY LEVELS, WHILE CONVERSE IS IN THE MIST OF A STRATEGIC RESET OF THE BRAND AND MARKETPLACE. NIKE EXPECTS NEGATIVE REVENUE AND PROFITABILITY IMPACTS FROM BOTH SEGMENTS TO CONTINUE THROUGHOUT FISCAL 2027. (ANNUAL CONTEXT: FISCAL 2026 GREATER CHINA REVENUES DECREASED 13% AND CONVERSE REVENUES DECREASED 32% ON A CURRENCY-NEUTRAL BASIS.)
IN FISCAL 2026 (ANNUAL), NIKE RECOGNIZED $385 MILLION IN EMPLOYEE SEVERANCE COSTS RELATED TO ORGANIZATIONAL CHANGES, CLASSIFIED PRIMARILY WITHIN GLOBAL BRAND DIVISIONS, NORTH AMERICA, AND EMEA. $142M WAS PAID IN CASH DURING THE YEAR, LEAVING $243M IN ACCRUED LIABILITIES AT MAY 31, 2026. THE COMPANY STATED IT CONTINUES TO EVALUATE OPPORTUNITIES AND MAY TAKE ADDITIONAL ACTIONS LEADING TO FUTURE CHARGES.
NO SHARES WERE REPURCHASED DURING Q4 FISCAL 2026; REPURCHASES HAD BEEN PAUSED SINCE Q1 FISCAL 2026. IN JUNE 2026 (SUBSEQUENT TO THE QUARTER), THE BOARD REAPPROVED THE EXISTING $18 BILLION SHARE REPURCHASE PROGRAM TO CONTINUE WITHOUT A FIXED EXPIRATION DATE AND WITHOUT INCREASING THE AUTHORIZED AMOUNT, LEAVING APPROXIMATELY $5.9 BILLION AVAILABLE.
EFFECTIVE AUGUST 17, 2026 (SUBSEQUENT EVENT), CFO MATTHEW FRIEND WILL CEASE SERVING IN THAT ROLE AND TRANSITION TO AN ADVISOR TO THE CEO UNTIL HIS SEPARATION ON SEPTEMBER 4, 2026, AS DISCLOSED IN AN 8-K FILED JUNE 23, 2026. AN OFFER LETTER DATED JUNE 16, 2026 FOR DAVID DENTON IS INCLUDED AS AN EXHIBIT, INDICATING A SUCCESSION PLANNING FOR THE CFO ROLE.
(Filed on April 1, 2026)
+0.1%
40.2%
$6.7B
Q3 FY26 revenues were $11.3 billion, flat on a reported basis and down 3% currency-neutral. Greater China revenue declined 10% currency-neutral to $1.6 billion amid declining store traffic, elevated promotional activity, and higher marketplace inventory; Converse revenue fell 37% currency-neutral to $264 million as part of a strategic brand and marketplace reset. NIKE Direct revenue decreased 7% currency-neutral on reduced traffic, with digital sales down 9% and comparable store sales down 5%.
Consolidated gross margin contracted 130 bps to 40.2%, with higher North America tariffs reducing gross margin by approximately 270 bps. On February 20, 2026, the U.S. Supreme Court ruled that IEEPA tariffs on imported goods were unauthorized; NIKE had paid approximately $1.0 billion in IEEPA tariffs as of the report date but determined that recovery of those funds is not probable and recorded no refund.
NIKE recognized $230 million in pre-tax employee severance costs in Q3 ($304 million for the nine months ended February 28, 2026), primarily tied to organizational changes concentrated in Global Brand Divisions and Converse. The company stated it continues to evaluate opportunities to realign costs across its supply chain and technology infrastructure and indicated additional actions could lead to further charges in future quarters.
NIKE's product, marketplace, and brand management actions-accelerating footwear innovation and reducing supply, repositioning NIKE Direct as a full-price platform, reinvesting in wholesale distribution, and increasing demand-creation investment-are planned for completion by the end of December 2026. North America has made the most progress; the company expects negative impacts from Greater China to continue throughout fiscal 2027.
During the quarter, NIKE implemented a new Enterprise Resource Planning Platform primarily in its EMEA geography, resulting in changes to certain processes and internal control over financial reporting. No shares were repurchased in Q3 under the $18 billion program (paused since Q1 FY26); cumulative repurchases through February 28, 2026 totaled 124.4 million shares at an average price of $97.57 for approximately $12.1 billion.
(Filed on December 30, 2025)
+0.6%
40.6%
$7B
NIKE reported Q2 FY2026 (ended Nov 30, 2025) consolidated revenue of $12.4 billion, up 1% reported (flat currency-neutral), with gross margin down 300 basis points to 40.6% primarily due to higher U.S. tariffs in North America. The company expects an approximate $1.5 billion annualized gross incremental cost from new tariffs and a negative impact on gross margin for fiscal 2026; inventories rose 3% to $7.7 billion, partly reflecting increased product costs from those tariffs.
Greater China revenue fell 16% currency-neutral (to $1.4 billion) with NIKE Direct digital sales down 36%, comparable store sales down 7%, and segment EBIT down 49% to $191 million. Management attributed the decline to falling store traffic, elevated promotional activity, and elevated marketplace inventory, and stated it expects negative impacts from Greater China to continue throughout fiscal 2026.
Converse revenue declined 31% currency-neutral (to $300 million) across all territories, and the segment swung from a $53 million prior-year EBIT profit to a $4 million loss (EBIT down 108%). The company described Converse as 'in the midst of a strategic reset of the brand and marketplace' and expects negative impacts from Converse to continue through fiscal 2026.
Channel dynamics diverged sharply: NIKE Brand wholesale revenue grew 8% currency-neutral (driven by North America wholesale up 24% on expanded distribution and marketplace-management actions), while NIKE Direct revenue fell 9% currency-neutral on reduced digital traffic (digital sales down 14%, store sales down 3%; comparable store sales down 3%). Demand creation expense rose 13% to $1.3 billion, reflecting increased brand and sports marketing investment.
NIKE outlined ongoing product, marketplace, and brand management actions—reducing supply of certain footwear, repositioning NIKE Brand Digital as a full-price platform, liquidating inventory through markdowns, and reinvesting in wholesale and physical retail presentation—and acknowledged these actions have had and will continue to have a negative impact on revenues and overall profitability, with North America having made the most progress while Greater China and Converse will take longer. No shares were repurchased during the quarter; the company paused buybacks in Q1 FY2026 due to lower operating cash flows under its remaining $5.9 billion of the $18 billion program.
(Filed on October 2, 2026)
+1.1%
42.2%
$7B
Total NIKE, Inc. revenues for fiscal Q1 2026 were $11.7 billion (up 1% reported, down 1% currency-neutral); net income fell 31% to $727 million and EBIT margin compressed to 7.7% from 10.9%. Gross margin declined 320 bps to 42.2%, driven primarily by lower NIKE Brand average selling price (approximately 250 bps impact from higher discounts and channel mix) and higher product costs including new tariffs in North America (approximately 100 bps). Management expects a gross incremental tariff cost of roughly $1.5 billion on an annualized basis and a continued negative impact on gross margin for fiscal 2026.
Channel strategy shifted materially: NIKE Direct revenues declined 4% to $4.5 billion, with NIKE Brand Digital sales down 12% to $2.0 billion, while NIKE Brand wholesale revenues rose 7% (5% currency-neutral) on higher units partially offset by increased discounts. Management is repositioning NIKE Brand Digital as a full-price platform, reinvesting in wholesale distribution, and liquidating inventory through elevated markdowns and higher sales returns/discounts to create capacity for new product. Footwear unit sales increased 2% currency-neutral, but ASP declined approximately 4 percentage points on discounts and channel mix.
Greater China revenues fell 10% currency-neutral to $1.5 billion with EBIT down 25%; digital sales dropped 27% and footwear units declined 11%. Converse revenues declined 28% currency-neutral to $366 million with EBIT down 68% on a 22% reduction in unit sales across all territories; Converse gross margin contracted 620 bps to 47.3%.
The company paused share repurchases in August 2025 due to lower operating cash flows, having purchased 1.8 million Class B shares for $123 million at an average price of $68.20 during June–July. Approximately $5.9 billion remains available under the $18 billion buyback program authorized in June 2022. Total shareholder returns for the quarter (dividends plus repurchases) were approximately $0.7 billion.
Inventories increased 8% to $8.1 billion from $7.5 billion at fiscal year-end, attributed to product mix and an increase in units. Management stated it is reducing the supply of certain footwear products in the marketplace while shifting toward new and innovative products and rebalancing the footwear portfolio mix, with the expectation that these actions will have a continued negative impact on near-term revenues and profitability.
