Win-now actions to be completed by end of calendar year
Nike reported Q3 FY26 results with flat revenue, EPS of $0.35, and gross margin of 40.2%. Management provided a cautious near-term outlook: Q4 revenue down 2-4% and expects the turnaround to take longer than anticipated but reaffirmed confidence in completing 'win-now' actions by calendar year-end. Key highlights include strong running growth, improving wholesale partnerships in North America, and ongoing cleanup in sportswear and Greater China. Nike Direct declined 7%, wholesale grew 1% in Q3; North America led with 11% wholesale growth.
Buzzberg readWin-now actions to be completed by end of calendar yearNike reported Q3 FY26 results with flat revenue, EPS of $0.35, and gross margin of 40.2%. Management provided a cautious near-term outlook: Q4 revenue down 2-4% and expects the turnaround to take longer than anticipated but reaffirmed confidence in completing 'win-now' actions by calendar year-end. Key highlights include strong running growth, improving wholesale partnerships in North America, and ongoing cleanup in sportswear and Greater China. Nike Direct declined 7%, wholesale grew 1% in Q3; North America led with 11% wholesale growth.Read full analysisCollapse analysis
Nike reported Q3 FY26 results with flat revenue, EPS of $0.35, and gross margin of 40.2%. Management provided a cautious near-term outlook: Q4 revenue down 2-4% and expects the turnaround to take longer than anticipated but reaffirmed confidence in completing 'win-now' actions by calendar year-end. Key highlights include strong running growth, improving wholesale partnerships in North America, and ongoing cleanup in sportswear and Greater China. Nike Direct declined 7%, wholesale grew 1% in Q3; North America led with 11% wholesale growth.
Running up over 20% in the quarter, providing proof point for the sport offense strategy.
Intentional inventory cleanup of classic franchises created a 5-point headwind; Air Force 1 and AJ1 stabilizing, Dunks still being worked through.
Greater China revenue down 10% with further expected reductions in Q4 (-20%); new leadership implementing marketplace cleanup.
Revenue$11.279B
-9% QoQ
EPS$0.35
-34% QoQ
Gross margin40.16%
reported
Op margin4.9%
reported
What changed this quarter
01
Guidance
Win-now actions to be completed by end of calendar year
Guidance · revenue to -3%
02
Demand
Nike running up over 20% for the quarter
Management expresses confidence in the strategic direction but acknowledges the comeback is taking longer than expected and highlights ongoing headwinds.
03
Margins
Expect gross margin expansion to begin in Q2
Reported gross margin was 40.16%, reinforcing the quarter's better-than-guided profitability.
04
Guidance
North America returns to balanced growth in near term
Guidance · revenue to -3%
Demand
Demand
Bookings & conversion
Nike running up over 20% for the quarter. Management expresses confidence in the strategic direction but acknowledges the comeback is taking longer than expected and highlights ongoing headwinds.
Tone · Measured
Management expresses confidence in the strategic direction but acknowledges the comeback is taking longer than expected and highlights ongoing headwinds.
Supply-chain alpha
A1
Nike's intentional removal of unhealthy classic footwear inventory created a ~5-point revenue headwind, improving marketplace health.
Nike's intentional removal of unhealthy classic footwear inventory created a ~5-point revenue headwind, improving marketplace health. — Cleaner inventory reduces promotional risk at retail partners like Foot Locker and Dick's, supporting their margins and sell-through.
“In sporty goods, Dick's and Academy are leaning in with us to tell more sport performance stories.”
… first in North America. One of our strongest executions this quarter was the NBA All-Star Weekend, which connected us to consumers and drove full-price sell-throughs while deepening our wholesale partnerships in Los Angeles with Shoe Palace, Dick's, and Foot Locker. The experience set the tone for how we will show up in L.A. for the World Cup, Super Bowl, and the 28 Olympics. Across all dimensions in North America, our wholesale momentum is accelerating. In sporty goods, Dick's and Academy are leaning in with us to tell more sport performance stories. We're building long-term plans with Foot Locker and JD and Athletic Specialty, and we're fully committed to our partners in running specialty, football specialty, and city specialty through our investments in product innovation and presentation. Ultimately, this is about creating a more profitable business model for both sides of the partnership. In Nike Direct, we've elevated our own experiences, setting the standard for how our brands show up in the marketplace. We've intentionally cleaned the market in all channels. The teams are hyper-focused on consumer right assortments and presenting them in environments that tell our best …
Nike's intentional removal of unhealthy classic footwear inventory created a ~5-point revenue headwind, improving marketplace health. — Cleaner inventory reduces promotional risk at retail partners like Foot Locker and Dick's, supporting their margins and sell-through.
“We're building long-term plans with Foot Locker and JD and Athletic Specialty”
… Weekend, which connected us to consumers and drove full-price sell-throughs while deepening our wholesale partnerships in Los Angeles with Shoe Palace, Dick's, and Foot Locker. The experience set the tone for how we will show up in L.A. for the World Cup, Super Bowl, and the 28 Olympics. Across all dimensions in North America, our wholesale momentum is accelerating. In sporty goods, Dick's and Academy are leaning in with us to tell more sport performance stories. We're building long-term plans with Foot Locker and JD and Athletic Specialty, and we're fully committed to our partners in running specialty, football specialty, and city specialty through our investments in product innovation and presentation. Ultimately, this is about creating a more profitable business model for both sides of the partnership. In Nike Direct, we've elevated our own experiences, setting the standard for how our brands show up in the marketplace. We've intentionally cleaned the market in all channels. The teams are hyper-focused on consumer right assortments and presenting them in environments that tell our best innovation stories, all with the goal of accelerating sell-through. If running shows what …
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