Companies

Nike’s fourth-quarter profit surges on tariff recovery

Jul 2, 2026 United States

The US-based sportswear company reported a net income increase of more than four times in the fourth quarter, following the expected recovery in US tariffs. However, revenue slipped by 1%

“We delivered fourth quarter results in line with our expectations, demonstrating financial discipline in an increasingly challenging operating environment, where sell-through remains challenged. We are improving the health of our business, managing our product portfolio and investing in marketplace elevation, while adjusting our operating costs for greater efficiency over time”, said Matthew Friend, Executive Vice President and Chief Financial Officer of Nike.

Fourth-Quarter Results

In the fourth quarter of the 2026 financial year, which ended on the 31^st of May, the company’s revenue totalled 11.0 billion US dollars. This represents a 1% decrease (or a 4% decrease on a currency-neutral basis) compared to the same period of the previous financial year.

Compared to the fourth quarter of the 2025 financial year, the Nike brand generated 10.7 billion US dollars in revenue, flat on a reported basis (or down by 3% on a currency-neutral basis), mainly due to declines in Greater China and EMEA, which were partially offset by growth in North America.

Meanwhile, the Converse brand generated 244 million US dollars, reflecting a 32% decline on a reported basis (or 34% on a currency-neutral) basis, compared to the same quarter of the prior year, due to declines across all territories.

In the fourth quarter, Nike’s gross margin increased by 890 basis points year-on-year to 49.2%, mainly thanks to the anticipated recovery of 986 million US dollars in tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This contributed approximately 900 basis points, though other factors offset a small portion of this gain.

In the three months up to the end of May, the company’s net income increased by 407% compared to the same period the previous year, reaching 1.1 billion US dollars. Diluted earnings per share also rose, reaching 0.72 US dollars, which included a benefit of 0.52 US dollars per share from the expected recovery of IEEPA tariffs.

Full-Year 2026

Nike reported full-year 2026 revenue of 46.4 billion US dollars, which was flat on a reported basis and down by 2% on a currency-neutral basis compared to the previous year. In general, this was thanks to growth in wholesale sales offsetting weaker direct-to-consumer and Converse sales.

In the fiscal year 2026, the gross margin increased by 20 basis points to 42.9%, while net income fell by 3% year-on-year to 3.1 billion US dollars and diluted earnings per share declined by 3% to 2.10 US dollars.

Meanwhile, inventories remained at 7.5 billion US dollars and cash, cash equivalents and short-term investments fell slightly to 9.0 billion US dollars.

Image Credits: brandinginasia.com

United States Companies Nike Quarter Results Results Sportswear