NEW YORK, July 1, 2026, 10:03 EDT
- Nike moved up 0.9% to $41.40 after touching $39.21. SPY and XLY were both down.
- Nike posted fourth-quarter EPS of 72 cents, boosted by a 52-cent tariff-recovery benefit. Gross margin would have been about flat without that item.
- Nike’s receivables climbed 26% but full-year revenue and inventories barely moved, creating tougher conditions for cash collection and wholesale sell-through.
NIKE, Inc. NYSE:NKE clawed back from early declines Wednesday after results, but the rebound left the big question open for the sportswear maker: is real demand driving the numbers, or is this mostly accounting moves and shifts in wholesale timing?
The stock last traded 35 cents higher at $41.40. Shares had dropped as low as $39.21 earlier, off nearly 4.5% from Tuesday’s close. It outperformed the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which was off 0.4%, and the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY), down 0.2%, according to 9:47 a.m. EDT quotes.
| Wednesday tape | Latest price | Move vs prior close | Intraday low | Intraday high |
|---|---|---|---|---|
| Nike NYSE:NKE | $41.40 | up 0.9% | $39.21 | $42.16 |
| SPDR S&P 500 ETF Trust (NYSEARCA:SPY) | $743.85 | down 0.4% | $742.43 | $745.72 |
| Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY) | $117.00 | off 0.2% | $116.92 | $117.73 |
Nike posted Q4 revenue of $10.97 billion, off 1% as reported and down 4% currency-neutral. Gross margin jumped 890 basis points to 49.2%, with Nike saying about 900 basis points came from expected IEEPA tariff recovery. Diluted EPS landed at 72 cents, which included a 52-cent boost tied to tariff recovery.
| Q4 profit line | Reported | Tariff item | Simple ex-tariff read |
|---|---|---|---|
| Diluted EPS | $0.72 | +$0.52 | Roughly $0.20 |
| Gross margin | 49.2% | Up about 900 bps | Near 40.2%, compares with 40.3% a year ago |
| North America EBIT | $2.00 bln | $965 mln benefit | About $1.04 bln, close to $1.05 bln last year |
| Nike Inc EBIT | $1.32 bln | $986 mln benefit | Close to $335 mln, $296 mln a year ago |
Ex-tariff numbers here just use subtraction, so they’re not the same as what companies adjust for. That’s important since the headline EPS beat came in cleaner than the rest of the P&L. Reuters said Nike’s adjusted EPS hit 20 cents, topping the LSEG view at 13 cents. But Nike cautioned that revenue will keep dropping into the first half of fiscal 2027.
The numbers from the balance sheet told a tougher story. Accounts receivable jumped to $5.93 billion, up 26% from $4.72 billion. Inventories held flat at $7.50 billion versus last year. Full-year revenue stood at $46.40 billion, basically flat. Receivables now cover about 46.7 days of sales, up from 37.2 days, measured against annual revenue. Inventory days hovered around 59.
| Sell-through gauge | FY2026 | FY2025 | Change |
|---|---|---|---|
| Accounts receivable | $5.93 bln | $4.72 bln | +26% |
| Inventories | $7.50 bln | $7.49 bln | Flat |
| Annual revenue | $46.40 bln | $46.31 bln | Flat |
| Receivables days of sales | 46.7 | 37.2 | +9.5 days |
| Inventory days of sales | 59.0 | 59.0 | Flat |
Investors are watching that now. Wholesale revenue was up 4% for the quarter, but Nike Direct dropped 7%, with Nike Brand Digital down 12% and owned stores off 7%. CFO Matthew Friend said “sell-through remains challenged.” Nike Investors
China remained soft. Nike’s Greater China revenue dropped 12% as reported, or 17% when stripping out currency moves, for the quarter. Footwear sales in the region also fell 17% on a currency-neutral basis. Reuters said China makes up about 15% of Nike’s yearly revenue. Nike said it sees continued pressure on sales while partners work through extra inventory.
CEO Elliott Hill stopped short of calling a bottom. On the post-earnings call, Hill said Nike is “not living up to our full potential.” CFO Friend told investors the “consumer is under pressure around the world,” Reuters reported. Cristina Fernandez at Telsey Advisory Group said the “turnaround is progressing slowly.” David Swartz at Morningstar said “improvement in results has been limited.” Reuters
Nike is planning over a dozen new shoe launches and has increased marketing for the World Cup, but Hill said it will be a while before the new items bring in consistent growth. Fourth-quarter sales in North America were up 3%. EMEA dropped 1%. Greater China fell 12%. Asia Pacific & Latin America edged up 1%.
