Nike beat earnings and revenue estimates last quarter, though its China sales continued to slide amid the company’s ongoing turnaround efforts.
Revenue was flat year-over-year at US$11.28 billion, above LSEG consensus estimates of $11.24 billion. Earnings per share were $0.35, falling 35% but surpassing estimates of $0.28.
“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 prioritised first continue to drive momentum," said Nike CEO Elliott Hill.
“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.”
Nike’s revenue in Greater China continued to slide, falling by 7% to $1.62 billion last quarter. This was above StreetAccount estimates of $1.50 billion, however.
While its North America revenue increased 3% to $5.03 billion, this was just below estimates of $5.04 billion. Europe, Middle East & Africa revenue rose 2% and Asia Pacific & Latin America revenue was up 1%.
The company has been seeking to revive its sales worldwide. Revenue fell 10% in its 2025 fiscal year, while earnings per share shed 42%.
Nike’s gross profit margin dropped 1.3 percentage points to 40.2%, which it credited to increased U.S. tariffs.
Inventories dipped 1% due to a decrease in units and product mix shifts, it said.
Nike’s (NYSE: NKE) shares closed 3% higher at $52.82, but plummeted 8.8% after-hours following the earnings release. Its market capitalisation is $78.19 billion.
