“This quarter Nike drove progress through our Win Now actions in our priority areas of North America, Wholesale, and Running”, said Elliott Hill, President & CEO of the company. “While we’re getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment. I’m confident that we have the right focus in Win Now and that our new alignment in the Sport Offense will be the key to maximizing Nike’s complete portfolio over the long-term”, he added. 

First Quarter Results

In the first quarter of its 2026 financial year, which ended on the 31^st of August, Nike’s total revenue amounted to 11.7 billion US dollars. This represents a 1% increase on a reported basis, but a 1% decline on a currency-adjusted basis, as compared to the same period in the previous financial year. However, it’s an improvement on the respective 12% and 11% declines reported in the prior quarter.

The Nike brand in particular contributed 11.4 billion US dollars to total first quarter revenue, representing a 2% year-on-year increase on a reported basis and remaining unchanged on a currency basis. This growth was driven by a currency-neutral increase in North America, which was offset by a decline in Greater China. From a channel perspective, Nike brand’s direct revenue decreased by 4% on a reported basis and by 5% on a currency-neutral basis. Meanwhile, wholesale revenue increased by 7% or 5% on a currency basis year-on-year. 

Converse’s struggles are more pronounced. In the first quarter of the current financial year, its revenue totalled 366 million US dollars, reflecting a decrease of 27% on a reported basis and 28% on a currency-neutral basis, as compared to the same period in the 2025 financial year. This was due to declines across all territories.

Nike reported a gross margin contraction of 320 basis points to 42.2% in the first quarter, mainly due to lower average selling prices reflecting higher discounts and a different product mix, as well as higher tariffs in North America.

During this period, the company reduced costs, with selling and administrative expenses falling by 1% to 4.0 billion US dollars. Demand creation expenses fell by 3% to 1.2 billion US dollars due to lower event spending, partly offset by higher sports sponsorship, while overheads remained unchanged at 2.8 billion US dollars due to wage pressures.

In the three months to the 31^st of August, Nike recorded a net income of 0.7 billion US dollars, representing a 31% year-on-year decline, and diluted earnings per share of 0.49 US dollars, representing a 30% year-on-year decline.