Companies

Nike reports modest gains amid ongoing challenges

Dec 19, 2025 United States

Nike has reported modest gains in the second quarter, driven by a recovery in the North American market. However, ongoing weakness in Greater China and pressure tariffs continue to weigh on its overall performance

“In the second quarter, we demonstrated the resilience of our portfolio, delivering modest top-line reported growth while managing headwinds from repositioning our business in a dynamic operating environment. We are making the shifts required to position our portfolio for a full recovery and driving real-time decisions in service of the long-term health of our brands”, said Matthew Friend, Executive Vice President & Chief Financial Officer of Nike.

Second Quarter Results

In the second quarter of the 2026 financial year, which ended on the 30^th of November, the company’s revenue amounted to 12.4 billion US dollars. This represents a 1% increase on a reported basis and no change on a currency-neutral basis, as compared to the same period in the previous financial year. In general, results were mixed across brands, channels and regions.

On a comparable basis to the second quarter of the 2025 financial year, the Nike brand recorded modest growth of 1% to reach 12.1 billion US dollars. This growth was driven by increased sales in North America, though this was partially offset by ongoing declines in Greater China and APLA. Meanwhile, Converse revenue fell by 30% (31% on a currency-neutral basis) to 300 million US dollars as sales declined across all territories.

At the channel level, the company’s wholesale revenue increased by 8% to 7.5 billion US dollars during the second quarter, supported by stronger demand in North America. Meanwhile, Nike Direct revenue fell by 8% (9% on a currency-neutral basis) to 4.6 billion US dollars, reflecting a sharp decline in Nike Brand Digital revenue and a weaker performance at Nike-owned stores.

In the second quarter of this financial year, Nike’s gross margin fell by 300 basis points year-on-year to 40.6%, primarily due to higher tariffs in North America. Meanwhile, selling and administrative expenses increased by 1% to 4.0 billion US dollars, driven by a 13% rise in demand creation spending, which was partly offset by a 4% reduction in operating overheads.

Consequently, net income decreased by 32% year-on-year to 0.8 billion US dollars, with diluted earnings per share standing at 0.53 US dollars.

“Fiscal 26 continues to be a year of taking action through Win Now, including realigning our teams, strengthening partner relationships, rebalancing our portfolio, and winning on the ground. We're finding our rhythm in our new sport offense, and setting ourselves up for the next phase of athlete-centered innovation in an elevated and integrated marketplace”, said Elliott Hill, President & CEO, highlighting the company’s progress towards turnaround.

Image Credits: about.nike.com

United States Companies Nike Quarter Results Results Sportswear