• UPDATE: NIKE Reports Flat Q2 Revenue, Profits Drop 32% on Lower Margins and Direct Sales
BEAVERTON, Oregon – NIKE, Inc. on Thursday reported financial results for its second fiscal quarter ending November 30, 2025, revealing a 32% drop in net income despite revenues remaining nearly flat at $12.4 billion.
What is new?
NIKE, Inc. announced its second-quarter fiscal 2026 results, showing total revenues of $12.4 billion, a 1 percent increase on a reported basis. However, net income fell 32 percent to $0.8 billion, with diluted earnings per share also decreasing 32 percent to $0.53 compared to the same period last year. The company’s gross margin declined by 300 basis points to 40.6 percent, a change attributed primarily to higher tariffs in North America.
Key Details
The results indicate a significant shift in sales channels. Wholesale revenues grew by 8 percent to $7.5 billion.
In contrast, NIKE Direct revenues, which encompass the company’s direct-to-consumer sales, fell 8 percent to $4.6 billion. This decline was driven by a 14 percent decrease in NIKE Brand Digital sales and a 3 percent drop in revenue from NIKE-owned stores.
Total selling and administrative expenses increased 1 percent to $4.0 billion. This included a 13 percent rise in demand creation expense, attributed to higher brand and sports marketing, while operating overhead expense decreased by 4 percent. The company’s inventories were $7.7 billion, down 3 percent from the previous year.
Segment Performance
The flagship NIKE Brand recorded revenues of $12.1 billion, up 1 percent. Performance varied by region, with North America revenues growing 9 percent and Europe, Middle East & Africa up 3 percent. These gains were offset by declines in Greater China, which fell 17 percent, and the Asia Pacific & Latin America region, which was down 4 percent.
Revenues for the Converse brand experienced a significant drop, falling 30 percent to $300 million due to declines across all territories. In a statement, President & CEO Elliott Hill said, “NIKE is in the middle innings of our comeback. We are making progress in the areas we prioritized first and remain confident in the actions we’re taking to drive the long-term growth and profitability of our brands.”
About this company
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories.
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