Core Viewpoint - Nike's "Win Now" turnaround plan is not yielding immediate results, with flat revenue of $11.3 billion for Q3 FY2026 and a subsequent drop in share price by over 8% despite better-than-expected earnings [1] Group 1: Financial Performance - Nike reported third-quarter earnings with revenue remaining flat at $11.3 billion [1] - CFO Matthew Friend indicated expectations of low single-digit revenue decline compared to the previous year, with gains in North America offset by declines in Greater China [6] - The company anticipates elevated inventory levels by the end of Q4 due to softness in sportswear and other market disruptions [7] Group 2: Strategic Initiatives - The "Win Now" strategy, launched in March 2025, aims to refocus the company on sports categories rather than demographics [5] - CEO Elliott Hill acknowledged that the comeback is taking longer than expected but expressed confidence in the strategy [1] - The company is prioritizing running as a growth category, which has shown momentum, while other segments like Greater China and Converse are still in early recovery stages [2][3] Group 3: Market Challenges - Digital sales declined by 9%, attributed to excessive promotions and higher markdowns [3] - Sportswear revenue continues to decline in low double digits, impacting overall growth [4] - The company is working on inventory cleanup, which has been a multi-quarter effort [4]

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Nike Projects a Decline in Sales. Its Stock Is Getting Hammered. Stocks Finish Rough Month on a High Note Can the Stock Market Rebound? Hiring Fell To Lockdown Levels Ahead Of Iran War Gas Prices Cross $4 for the First Time Since 2022 Top Stories Weak sales in China have offset gains in North America for Nike. Costfoto / NurPhoto / Getty Images Close Key Takeaways Nike's stock is tumbling on signs of stumbling blocks in the company's turnaround. Shares of Nike (NKE) were recently down 9% in extende ...

Market Performance - The final trading day of March saw significant gains, with the Dow up +1125 points (+2.49%), the S&P 500 up +104 points (+2.91%), and the Nasdaq up +795 points (+3.83%) [1] - The small-cap Russell 2000 also increased by +82 points (+3.40%) [1] Economic Indicators - The Job Openings and Labor Turnover Survey (JOLTS) for February reported 6.88 million job openings, slightly below the projected 6.92 million, and down from a revised 7.2 million in January [4] - The Chicago Business Barometer for March decreased to 52.8, below the estimated 55.1, following a 12-month high of 57.7 in February, but remains above the growth threshold of 50 [5] - Consumer Confidence for March unexpectedly rose to 91.8, surpassing the estimated 87.5 and the revised February figure of 91.0, indicating improved consumer sentiment [6] Company Earnings - NIKE (NKE) reported earnings of +$0.35 per share, exceeding the expected +$0.29, with revenues of $11.28 billion, also above the consensus of $11.23 billion, driven by strong performance in China [7] - RH (formerly Restoration Hardware) missed earnings expectations with $1.53 per share against the expected $2.21, and revenues of $843 million fell short of the $872.4 million forecast, leading to a significant reduction in revenue guidance for the current quarter [8]

Core Insights - Nike reported $11.28 billion in revenue for the quarter ended February 2026, marking a year-over-year increase of 0.1% and a surprise of +0.43% over the Zacks Consensus Estimate of $11.23 billion [1] - The earnings per share (EPS) for the same period was $0.35, down from $0.54 a year ago, but exceeded the consensus EPS estimate of $0.29 by +20.77% [1] Revenue Performance - North America revenue was $5.03 billion, matching analyst estimates and reflecting a +3.3% change year-over-year [4] - Greater China revenue was $1.62 billion, surpassing the average estimate of $1.5 billion, but showed a decline of -6.8% year-over-year [4] - Asia Pacific & Latin America revenue reached $1.49 billion, exceeding the average estimate of $1.45 billion, with a +1.4% year-over-year change [4] - Europe, Middle East and Africa revenue was $2.87 billion, slightly below the estimated $2.95 billion, but still represented a +2.2% change year-over-year [4] Segment Performance - Converse revenue was $264 million, significantly below the average estimate of $312.61 million, indicating a -34.8% year-over-year decline [4] - Total Nike Brand revenue was $11.01 billion, exceeding the average estimate of $10.93 billion, with a +1.1% year-over-year change [4] - Footwear revenue was $7.35 billion, surpassing the average estimate of $7.13 billion, reflecting a +2% year-over-year increase [4] - Apparel revenue was $3.18 billion, slightly below the average estimate of $3.27 billion, showing a -0.3% year-over-year change [4] - Equipment revenue was $468 million, below the estimated $477.32 million, with a -1.9% year-over-year change [4] Stock Performance - Nike shares have returned -16% over the past month, compared to the Zacks S&P 500 composite's -7.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Revenues for the quarter were flat on a reported basis and down 3% on a currency neutral basis [23] - Gross margins declined 130 basis points to 40.2%, primarily due to 300 basis points associated with higher tariffs in North America [24] - Earnings per share was $0.35 [24] - Inventory decreased 1% versus the prior year, with units down mid-single digits [24] Business Line Data and Key Metrics Changes - Nike Direct was down 7%, with Nike Digital declining 9% and Nike stores down 5% [23] - Wholesale grew 1% [23] - Sportswear continues to be a headwind to revenue growth, declining low double digits in the quarter [22] - Nike Running was up over 20% for the quarter, while global football is expected to transform with the upcoming World Cup [10][11] Market Data and Key Metrics Changes - North America revenue grew 3%, with running and global football showing double-digit growth [26] - EMEA revenue was down 7%, with Nike Direct declining 13% and Nike stores down 20% [28] - Greater China revenue declined 10%, with Nike Direct down 5% and wholesale down 13% [29] - APLA revenue was down 2%, with Nike Direct declining 8% [31] Company Strategy and Development Direction - The company is focused on a comeback strategy, emphasizing the removal of unhealthy inventory and improving marketplace health [5][6] - A new leadership team is in place to strengthen various business segments, including Greater China and Converse [7][20] - The company plans to share a more detailed long-term view at an upcoming Investor Day [9] - The strategy includes a shift from a Nike Direct first offense to a more integrated marketplace approach [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the comeback is taking longer than expected but remains confident in the strategic direction [21][34] - The company expects revenues to be down low single digits for the upcoming quarters, with North America showing modest growth [33] - Management is focused on managing inventory and protecting brand health despite ongoing challenges in various markets [22][23] Other Important Information - The company incurred a $230 million charge due to employee-related severance costs, primarily in supply chain and technology [24][25] - The company is working to variabilize its cost structure to improve long-term profitability [25] Q&A Session Summary Question: EMEA performance issues and strategy to fix it - Management highlighted both progress and challenges in EMEA, with running showing double-digit growth but sportswear underperforming [42][43] - New leadership is in place to focus on performance categories and improve marketplace execution [45] Question: Guidance on revenue and earnings - Management provided clarity on expected revenue trends, indicating low single-digit declines overall, with North America improving and Greater China facing headwinds [47][53] Question: D2C gross margins and operating overhead - Management emphasized the importance of a balanced marketplace and noted improvements in the quality of the D2C business in North America [57][60] - The $230 million severance charge was clarified as part of the operating overhead for the quarter [56] Question: Stabilizing the sportswear business - Management is transitioning from defense to offense in sportswear, with some positive signs in classic franchises [68][70] Question: Internal vs external challenges in the turnaround - Management indicated that both internal restructuring and external market conditions are contributing to the slower-than-expected turnaround [74][78]

Nike (NYSE:NKE) Q3 2026 Earnings call March 31, 2026 05:00 PM ET Speaker8Good afternoon, everyone, and welcome to Nike, Inc.'s third quarter fiscal 2026 conference call. For those who want to reference today's press release, you'll find it at investors.nike.com. Leading today's call is Paul Trussell, VP of Corporate Finance and Treasurer. I'd now like to turn the call over to Paul Trussell.Speaker9Thank you, operator. Hello, everyone, and thank you for joining us today to discuss Nike, Inc.'s third quarter ...

Nike reported quarterly results that were a bit better than Wall Street's expectations, but investors still didn't appear convinced of the sneaker giant's turnaround efforts. ...

The sneaker and athletic apparel company logged a profit of $520 million as sales in China continued to slide. ...

A Nike logo is displayed at a Nike store on Feb. 5, 2026 in Austin, Texas.Nike topped Wall Street's quarterly earnings and revenue expectations on Tuesday but posted a mixed picture in its two most important regional markets. Nike's largest market of North America continued to show steady growth, as revenue climbed 3% to $5.03 billion, but that was just shy of Wall Street's expectations of $5.04 billion, according to StreetAccount. Meanwhile, Nike's Greater China market is continuing to shrink with revenue ...