Nike swings to Q4 profit on tariff refund boost, but China slump deepens

US sportswear retailer Nike reported full-year gross of $46.39bn for fiscal twelvemonth 2026, portion fourth-quarter (Q4) nett roseate connected an expected tariff betterment alongside continued weakness successful China and Europe.

For Q4 ended 31 May 2026, gross fell by 1% connected a reported ground to $10.97bn and was down 4% connected a currency-neutral basis.

Gross borderline accrued by 890 ground points to 49.2%, chiefly owed to an astir 900-basis constituent payment from the anticipated betterment of International Emergency Economic Powers Act tariffs, valued astatine $986m.

Diluted net per stock accrued to $0.72 from $0.14 a twelvemonth earlier, including a $0.52 payment related to the aforesaid tariff recovery.

Net income roseate by conscionable implicit 4 times, oregon 407%, to $1.06bn successful the quarter.

Nike Brand gross was unchanged connected a reported ground astatine $10.72bn but declined 3% connected a currency-neutral basis, arsenic falls successful Greater China and Europe, Middle East & Africa (EMEA) were offset by maturation successful North America.

Wholesale gross roseate by 4% to $6.6bn successful the quarter, portion gross from Nike Direct – the company's D2C part – decreased by 7% to $4.1bn.

The diminution successful Nike Direct reflected a 12% driblet successful Nike Brand Digital and a 7% autumn successful Nike-owned stores.

Converse marque gross fell 32% to $244m, with declines crossed each territories.

By region, North America grew by 3% to $4.83bn successful Q4.

Greater China fell by 12% to $1.29bn connected a reported ground and declined 17% connected a currency-neutral basis, portion footwear gross successful the portion dropped by 13%.

EMEA gross edged down 1% to $2.97bn and was down 6% connected a currency-neutral basis.

For the afloat year, gross was level connected a reported ground astatine $46.39bn and fell 2% connected a currency-neutral basis.

Gross borderline accrued by 20 ground points to 42.9%.

Net income declined by 3% to $3.10bn, portion diluted net per stock besides fell by 3% to $2.10.

Full-year wholesale gross accrued by 6% to $27.5bn, portion Nike Direct gross declined by 6% to $17.7bn.

Converse gross for the twelvemonth fell by 31% to $1.2bn.

Nike president and CEO Elliott Hill said: "In fiscal 2026, we took decisive actions to fortify the instauration of Nike and reposition our concern for semipermanent growth.

"While we proceed to look top-line headwinds, we are encouraged by advancement successful show merchandise and are focused connected accordant execution, improved profitability and scaling our wins to realise our afloat potential."

"Nike swings to Q4 nett connected tariff refund boost, but China slump deepens" was primitively created and published by Retail Insight Network, a GlobalData owned brand.