Nike reported Q1 FY26 results with revenue down 1% currency-neutral and EPS $0.49, while guiding Q2 revenue down low single digits and gross margins down 300-375 bps due to tariff escalation and restructuring. Management highlighted progress in running (+20%) and wholesale, but cautioned that sportswear, Greater China, and Nike Direct remain challenged. The new 'sport offense' organizational shift is expected to drive long-term innovation and consumer engagement. Q1 revenue -1% CN, EPS $0.49; gross margin dropped 320 bps to 42.2% on tariff and promotional headwinds.
Nike reported Q1 FY26 results with revenue down 1% currency-neutral and EPS $0.49, while guiding Q2 revenue down low single digits and gross margins down 300-375 bps due to tariff escalation and restructuring. Management highlighted progress in running (+20%) and wholesale, but cautioned that sportswear, Greater China, and Nike Direct remain challenged. The new 'sport offense' organizational shift is expected to drive long-term innovation and consumer engagement. Q1 revenue -1% CN, EPS $0.49; gross margin dropped 320 bps to 42.2% on tariff and promotional headwinds.
Management acknowledged progress and momentum in key areas like running and North America, but repeatedly emphasized that recovery is early-stage and non-linear, with significant work ahead in other areas.
Guidance tone
Q2 guide: revenue down low single digits, gross margin down 300-375 bps (175 bps from tariffs), SG&A up high single digits.
Nike running revenue grew over 20% in Q1. Management acknowledged progress and momentum in key areas like running and North America, but repeatedly emphasized that recovery is early-stage and non-linear, with significant work ahead in other areas.
Nike running revenue grew over 20% in Q1. Management acknowledged progress and momentum in key areas like running and North America, but repeatedly emphasized that recovery is early-stage and non-linear, with significant work ahead in other areas.
Management discussed investments in refreshing retail environments, particularly in Greater China, and mentioned that this will require investment and time, but no specific capital expenditure guidance was provided.
Management acknowledged progress and momentum in key areas like running and North America, but repeatedly emphasized that recovery is early-stage and non-linear, with significant work ahead in other areas.
“We now estimate the gross incremental cost to Nike on an annualized basis to be approximately $1.5 billion. Up from the $1 billion we shared 90 days ago.”
“Our spring order book is up year over year. So excited with the progress that we're making from a product perspective...”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Gross margin | FY2026 Q2 | 3%–3.75% | 3.375% | MAINTAINED |
Nike's Amazon store is performing above expectations, indicating increased platform attractiveness for branded apparel and potentially higher Amazon marketplace fees.
“pleased with the launch of the Nike Brand Store on Amazon, where we are driving stronger engagement and sales than anticipated.”
… the brand for profitable growth in the future. Of the priority win-now actions, elevating the full marketplace is in the early innings. The positive is that North America, where we invested first took some big steps forward this quarter. The team continues to give more consumers access to the brand in more premium environments. We reset over 1,300 running spaces in the quarter, from Dick's to Nordstrom's to Heartbreak Hill. And we are also pleased with the launch of the Nike Brand Store on Amazon, where we are driving stronger engagement and sales than anticipated. While our North America teams are setting the tone, we're still far from our ultimate goal of elevating an integrated marketplace, digital and physical, wholesale and Nike direct in all geographies. Greater China, as I mentioned on the last call, is facing structural challenges in the marketplace. Our business was down 10% for the quarter. Seasonal sell-through continues to underperform our plans. requiring larger investments to keep the marketplace clean. My leadership team and I were in China a few weeks ago. We traveled to three cities, spending time with our greater China leadership team, consumers and our …
Nike is investing in retail presentation at Dick's, strengthening the wholesale relationship but no direct demand signal.
“We reset over 1,300 running spaces in the quarter, from Dick's to Nordstrom's to Heartbreak Hill.”
… market reset. With Converse, we just put new leadership in place, and we're going to take aggressive actions to better position the brand for profitable growth in the future. Of the priority win-now actions, elevating the full marketplace is in the early innings. The positive is that North America, where we invested first took some big steps forward this quarter. The team continues to give more consumers access to the brand in more premium environments. We reset over 1,300 running spaces in the quarter, from Dick's to Nordstrom's to Heartbreak Hill. And we are also pleased with the launch of the Nike Brand Store on Amazon, where we are driving stronger engagement and sales than anticipated. While our North America teams are setting the tone, we're still far from our ultimate goal of elevating an integrated marketplace, digital and physical, wholesale and Nike direct in all geographies. Greater China, as I mentioned on the last call, is facing structural challenges in the marketplace. Our business was down 10% for the quarter. Seasonal sell-through continues to underperform our plans. requiring larger investments to keep the marketplace clean. My leadership team and I were in …