Please refer to Nike's earnings press release or Nike's website, investors.nike.com, for comparable GAAP measures and quantitative reconciliations. All growth comparisons on the call today are presented on a year-over-year basis and are currency neutral unless otherwise noted. Our renewed obsession with sport and the success of our athletes is fueling energy for our brands and building momentum in our performance business, which grew mid-single digits this fiscal year. Our focus now is translating that brand strength into healthier demand, cleaner marketplaces, and sustainable growth.
You can see the same energy in our broader product pipeline too. We've now delivered five consecutive quarters of double-digit growth in Nike Running, and over that period, we've added roughly $1 billion to our running business. For the fiscal year, wholesale revenue grew 4%, led by double-digit growth in North America. We're also investing in experiences in our key countries and cities to accelerate demand.
As we strengthen NIKE, Inc.'s foundation, we're taking decisive action across our supply chain to lower cost, streamline operations, and rightsize our distribution network to match the demand ahead. That's especially important in Greater China, a critical long-term growth market for Nike, where we are fully committed to winning. In the near term, we're executing, cleaning up inventory, investing in must-win doors, and when we invest, we're seeing sales increase high single digits. As we scale the Sport Offense across more sports, we expect growth to expand beyond Running into Training, Basketball, and ACG.
| Metric | Period | Current guidance |
|---|---|---|
| Earnings (Q4'26 through Q2'27 cumulative) | 3-quarter window | Flattish reaffirmed, excluding the tariff-recovery benefit |
| Revenue (Q1 FY2027) | Q1 FY2027 | Down low-to-mid single digits (biggest driver vs Q4 is FX no longer a tailwind) |
| Revenue (Q2 FY2027) | Q2 FY2027 | Sequential deceleration vs Q1 on tough comps (prior-year EMEA digital promotions and elevated North America wholesale) |
| Gross margin | FY2027 | Expand in Q1, with structural supply-chain cost benefits building from Q2; path back toward double-digit operating margins |
| Sportswear / Jordan streetwear | FY2027 | Expected to remain negative for the year with improvement in the back half; 12+ new Sportswear footwear styles launching in H2 |
| Win Now actions | end of CY2026 | On track to sunset by end of calendar 2026; fuller outlook to be shared at the fall Investor Day |
| Metric | YoY | Note |
|---|---|---|
| Revenue (reported) | -1% (-4% currency-neutral) | Modest North America growth more than offset by declines in Greater China, EMEA and Converse; full-year revenue flat reported (-2% cc). |
| GAAP diluted EPS | $0.72 ($0.20 ex-tariff benefit) | Boosted by the $986M one-time IEEPA tariff-recovery benefit; full-year EPS $2.10 (down 3%), $1.58 excluding the benefit. |
| Gross margin | 49.2% (+890 bps) | 900 bps from the tariff recovery; excluding it, 40.2%, down 10 bps on severance-related supply-chain costs — better than the guided decline. |
| Operating margin (reported) | 11.9% | Inflated by the tariff-recovery benefit in cost of sales; underlying margins stabilizing on North America discount improvement. |
| North America revenue | +3% (wholesale +10%) | Strong double-digit growth in global football and running plus kids and golf; EBIT up 91% reported (down 1% ex-tariff benefit); Foot Locker comps positive for the first time in four years. |
| Greater China revenue | -17% | Marketplace reset with lower sell-in, reduced promotions and inventory down double digits; House of Innovation Shanghai grew double digits and reset doors comped positively. |
| EMEA revenue | -6% | Heightened inventory/promotions, Middle East disruption and heavier Sportswear mix; off-price down 50% drove a 15-point full-price realization gain. |
| NIKE Direct | -9% (Digital -12%, stores -7%) | Deliberate reduction of digital promotions to reposition NIKE Direct as a premium, full-price business. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Sport Offense operating model | Standing up vertical sport teams | About 8,000 teammates moved into vertical sport teams; the model is producing results first in Running and now expanding to Training, Basketball, Football and ACG, with the first full brief-to-market product wave across sports arriving spring 2027. | — |
| Sportswear / Jordan reset | Reducing classic franchises | $2 billion of classic franchises removed in FY2026; dedicated consumer teams now leading a community-driven, innovation-led relaunch (12+ new footwear styles in H2 FY2027, new silhouettes rather than retros) — but management stresses it will take time to scale. | — |
| Greater China turnaround | Committed long-term | A comprehensive reset under Cathy Sparks toward a more premium, culturally connected, sport-led marketplace; local-for-local product arriving holiday 2027; sequential sell-through improvement and full-price recovery, with profitability expected to bottom before sales. | — |
| Innovation pipeline | Rebuilding product flow | Momentum across Pegasus 42, Vomero Plus 2, AeroFit (moving from football kits into running apparel in fall 2026), Nike Mind (scaling beyond the slide in spring 2027), Free Metcon and new basketball (Caitlin Clark launch holiday 2026); management expects a relentless season-in, season-out product cadence. | — |
| Integrated marketplace elevation | Rebuilding wholesale, elevating doors | Wholesale revenue grew 4% for the year (double digits in North America), 15,000+ wholesale spaces refreshed, 150+ elevated stores; elevation consistently drives stronger sell-through in owned and partner doors, and NIKE Direct is de-promoting to become premium. | — |
| Structural margin recovery | Margins under pressure | Four consecutive quarters of sequential margin improvement; supply-chain make-cost actions (fewer facilities, smaller workforce, changed flow) that cost ~$400M in FY2026 are expected to drive expansion in FY2027 toward a double-digit operating-margin path, with a fuller framework at Investor Day. | — |
| CFO transition | — | CFO Matt Friend, after 17 years at Nike, is departing; multiple analysts noted the transition on the call as the company heads into its fall Investor Day. | — |