US EditionNike beats on earnings as sneaker giant posts surprise sales growth
Nike's fiscal Q1 2026 sales rose 1% to $11.7 billion despite $1.5 billion in tariff costs and challenges in Greater China, driven by gains in wholesale and North America, CEO Elliott Hill said.
- On Tuesday, Nike Inc. surprised investors by posting a 1% revenue gain to $11.72 billion in the first quarter of fiscal 2026, but warned sales will decline during most of the holiday season.
- Rising tariffs have hit Nike Inc.'s margins, with U.S. tariffs under President Donald Trump now expected to cost about $1.5 billion and Greater China revenue down 9% to $1.5 billion.
- Wholesale strength showed through as wholesale segment grew 7% to $6.8 billion, direct-to-consumer sales fell 4% to $4.5 billion, inventory eased 2% to $8.1 billion and gross margin contracted to 42.2%.
- Shares jumped after the report, rising 3.6% in after-hours as Elliott Hill, incoming CEO, prepares to take the helm on October 14 while NikeSKIMS launched last week.
- Looking ahead, Nike expects low single-digit growth in fiscal 2026, with analysts projecting FY2026 revenue of $46–48 billion and FY2027 sales near $49 billion.
63 Articles
63 Articles
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