Companies

Nike’s third-quarter profit slides on tariffs and rising costs

Apr 6, 2026 United States

The sportswear company has reported a 35% year-on-year decline in third-quarter profit despite flat revenue, with higher tariffs and rising costs having a negative impact on overall performance

“This quarter we took meaningful actions to improve the health and quality of our business. The pace of progress is different across the portfolio and the areas we prioritized first continue to drive momentum. The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of Nike”, said Elliott Hill, President and Chief Executive Officer.

Third Quarter Results

In the third quarter of the 2026 financial year (which ended on the 28^thof February), Nike’s revenue remained flat at 11.3 billion US dollars on a reported basis but decreased by 3% on a currency-neutral basis compared to the same period the previous year.

The Nike brand generated 11.0 billion US dollars in revenue during this quarter, representing a year-on-year increase of 1% on a reported basis and a decrease of 2% on a currency-neutral basis. This was mainly due to a decline in the EMEA and Greater China regions, which was partially offset by growth in North America.

Converse remains in the red. Third quarter revenue decreased by 35% on a reported basis and by 37% on a currency-neutral basis, on a comparable basis to the same quarter of the previous year, reaching 264 million US dollars, due to declines across all territories.

From a channel perspective, Nike saw its wholesale revenue rise by 5% on a reported basis and by 1% on a currency-neutral basis in the third quarter, totalling 6.5 billion euros, due to growth in North America. However, Nike’s direct revenue fell by 4% on a reported basis and by 7% on a currency-neutral basis, totalling 4.5 billion euros. This includes a 9% decrease in Nike brand digital sales and a 5% decrease in owned stores.

In the third quarter of the current financial year, the company’s gross margin contracted by 130 basis points year-on-year to 40.2%, due to higher tariffs in North America. Meanwhile, selling and administrative expenses increased by 2% to 4.0 billion US dollars, driven by severance costs and adverse currency movements.

Ultimately, Nike reported a net income of 0.5 billion US dollars for the third quarter, reflecting a 35% decline compared to the same period in fiscal year 2025. Diluted earnings per share were also down by 35%, standing at 0.35 US dollars.

“We delivered third quarter results in line with our expectations, and our teams continue to execute with discipline”, stated Matthew Friend, Executive Vice President and Chief Financial Officer. “Win Now actions will continue to impact results over the balance of the calendar year, and we remain confident in our ability to position the Company for profitable growth long-term”, he added.

At the end of the quarter, inventories fell by 1% to 7.5 billion US dollars, reflecting lower product volumes and mix shifts despite higher tariff-related costs, while cash and short-term investments dropped 2.3 billion US dollars to 8.1 billion US dollars amid dividends, debt repayment, capital spending, and share buybacks.

Source and Image Credits: investors.nike.com

United States Companies Nike Quarter Results Results Sportswear