Beaverton, Oregon, March 31, 2026, 13:50 PDT
Nike topped third-quarter sales forecasts on Tuesday, marking an initial success for Chief Executive Elliott Hill as he takes the helm at the sportswear company. The company posted revenue of $11.28 billion for the quarter ended Feb. 28, holding steady compared to the prior year. Diluted earnings per share slipped to 35 cents, down from 54 cents a year ago.
The timing of Nike’s result couldn’t be trickier. Hill’s push to refocus on sport and win back investors comes as shares edge once more toward nine-year lows, putting this report squarely under the microscope as an early sign—if any—of real progress.
Results landed a bit lopsided, but not as rough as many anticipated. Retail partner sales grew 5%, cushioning the 4% decline seen in Nike Direct—its own stores and online channels. North American revenue managed a 3% increase. Stripping out currency effects, though, total group revenue slid 3%.
Profit numbers looked shakier. Gross margin slipped 1.3 points to 40.2%, hit mostly by pricier North American tariffs, while net income landed at $520 million—a 35% slide. Inventory nudged lower by 1% to $7.5 billion.
Hill pointed to “meaningful actions” already underway at Nike, and finance chief Matthew Friend added that teams are still “execute with discipline.” Nike said its ongoing turnaround measures will continue to influence results for the rest of this calendar year, though the longer-term goal is to get back to profitable growth. Nike Investor Relations
China’s still lagging. Greater China revenue dropped 7%, coming in at $1.62 billion—a fresh stumble on what Hill once described as Nike’s “longest road” to recovery. Reports highlight sluggish innovation and uninspired product choices as culprits in the brand’s fading momentum there. Nike Investor Relations
This comes as Nike faces stiffer competition on its home turf, with Chinese consumers tightening their wallets. Rivals Anta and Li Ning are picking up steam, thanks to quicker supply chains and bigger store footprints. “Global brands in China struggle when they charge a premium without a ‘good reason,’” said Yaling Jiang, founder of consultancy ApertureChina. Reuters
Adidas has already bounced back—proof that a turnaround can happen. Morningstar’s David Swartz insists Nike’s China issues aren’t terminal, pointing out Adidas regained ground by focusing on local preferences. But Nike hasn’t yet convinced customers or wholesale partners it can pull off the same trick.
There’s a real chance the recovery could stall. Margins are feeling the pinch from tariffs, shoppers aren’t spending consistently, and fresh inflation concerns tied to the Middle East conflict are piling on. Even with the sales numbers coming in ahead, investors aren’t fully convinced.
Nike’s conference call is set for 2:00 p.m. Pacific, with investors eager for any hints on just how persistent the drag from China and tariffs might be. Tuesday’s release showed Nike making headway in some areas, though the gains haven’t spread throughout the entire business.
