Financial Performance - NIKE, Inc. revenues for Q3 fiscal 2026 were $11.3 billion, flat on a reported basis and down 3% on a currency-neutral basis[91]. - Net income for Q3 fiscal 2026 was $520 million, a decrease of 35% compared to $794 million in Q3 fiscal 2025[101]. - Total NIKE, Inc. EBIT decreased by 23% to $635 million for the three months ended February 28, 2026, compared to $826 million in the same period of 2025[123]. - Total revenues for NIKE, Inc. were $11,279 million for the three months ended February 28, 2026, a slight increase of 0% compared to $11,269 million in the same period of 2025[123]. - Total revenues for the nine months ended February 28, 2026, decreased by 11% to $4,550 million compared to $5,110 million in the same period of 2025[132]. Revenue Breakdown - NIKE Brand wholesale revenues increased to $6.5 billion in Q3 fiscal 2026, up from $6.2 billion in Q3 fiscal 2025, driven by higher revenues in North America and Asia Pacific & Latin America[91]. - NIKE Direct revenues decreased to $4.5 billion in Q3 fiscal 2026 from $4.7 billion in Q3 fiscal 2025, primarily due to a decrease in traffic[91]. - NIKE Brand revenues for the first nine months of FY2026 were $35.4 billion, up 1% on a reported basis, with a currency-neutral decrease of 1%[106]. - NIKE Brand wholesale revenues for the first nine months of FY2026 were $20.8 billion, up 7% on a reported basis and up 5% on a currency-neutral basis[106]. Cost and Margin Analysis - Gross margin for Q3 fiscal 2026 decreased by 130 basis points to 40.2%, mainly due to higher tariffs in North America[91]. - Gross profit for Q3 FY2026 was $4.53 billion, a 3% decrease from $4.68 billion in Q3 FY2025, resulting in a gross margin of 40.2%, down 130 basis points year-over-year[107][108]. - Gross margin contracted by 350 basis points to 39.6% due to higher tariffs, partially offset by higher ASP and lower inventory obsolescence reserves[127]. - Gross margin for Converse contracted by approximately 970 basis points, primarily due to brand reset costs and higher inventory obsolescence reserves[148]. Tax and Expenses - The effective tax rate for Q3 fiscal 2026 was 20.0%, compared to 5.9% in Q3 fiscal 2025[101]. - Total selling and administrative expenses for Q3 FY2026 were $3.98 billion, up 2% from $3.89 billion in Q3 FY2025, representing 35.3% of revenues[108]. - Demand creation expense increased by 4% to $416 million, attributed to higher sports marketing expenses[127]. - Demand creation expense increased by 11%, primarily due to unfavorable foreign currency exchange rates and higher sports marketing expenses[131]. Shareholder Returns and Capital Management - NIKE returned approximately $609 million to shareholders through dividends in Q3 fiscal 2026[91]. - The company repurchased a total of 1.8 million shares for $122.4 million under the $18 billion share repurchase program, with 124.4 million shares repurchased at a cost of approximately $12.1 billion as of February 28, 2026[163]. - Cash provided by operations was $1,231 million, a decrease from $3,235 million in the same period of 2025[159]. - Cash used by financing activities for the nine months ended February 28, 2026, was $1,778 million, primarily driven by dividend payments, compared to $4,176 million in 2025[162]. Market and Geographic Performance - North America revenues increased by 3% on a currency-neutral basis, with wholesale revenues up 11%, while NIKE Direct revenues decreased by 5%[127]. - EMEA revenues decreased by 7% on a currency-neutral basis, with NIKE Direct revenues down 13% due to a 6% decline in digital sales and a 20% decline in store sales[131]. - Greater China revenues decreased by 10% on a currency-neutral basis, with wholesale revenues down 13% and NIKE Direct revenues down 5%[135]. - APLA revenues decreased 2% on a currency-neutral basis, with NIKE Direct revenues down 8% due to a 12% decline in digital sales and a 3% decline in store sales[140]. Operational Challenges - The company recognized pre-tax charges of $230 million for the three months ended February 28, 2026, primarily related to employee severance costs[94]. - The U.S. Supreme Court ruled that tariffs imposed under the IEEPA were unauthorized, with total tariffs paid amounting to approximately $1.0 billion[95]. - Other (income) expense, net for Q3 FY2026 was $82 million, an increase from $38 million in Q3 FY2025, mainly due to settlements of legal matters[115][116]. - Corporate expenses decreased by 13% to $411 million for the three months ended February 28, 2026, compared to $470 million in the same period of 2025[123].

Shares of Dow component Nikely Nike are down sharply. They're now down by about 10 and a half%. The company warning that sales will fall for the rest of this calendar year.Joining us right now is Newberger Berman senior research analyst Kevin McCarthy. Kevin, the company said yesterday that this turnaround is taking longer than the street had anticipated. Um do you think the selloff is warranted.Down 10 and a half% this morning. >> Good morning, Becky. Um, you know, I I think this is, as they've suggested m ...

Nike is losing ground in its second biggest market and warns that the next quarter in China could be worse https://t.co/3khTU3DLm3 ...

After Nike announced a disappointing forecast for the year ahead, news that sent the company’s shares tumbling, Chief Executive Officer Elliott Hill turned to his staff to air his frustration. https://t.co/Sgy8CzdL6N ...

Nike's third-quarter earnings suggest its uphill slog to recovery is getting harder, writes @AndreaFelsted (via @opinion) https://t.co/7Bg6WGkep2 ...

Core Viewpoint - Nike's stock has dropped over 9% in pre-market trading, reaching its lowest levels in over a decade, following a mixed earnings report that included better-than-expected earnings but disappointing future sales forecasts [1][2]. Financial Performance - Nike reported fiscal third-quarter earnings per share (EPS) of $0.35 and revenue of $11.3 billion, exceeding Wall Street expectations of $0.29 and $11.23 billion, respectively [1]. - Despite solid results, the CFO indicated that fiscal fourth-quarter sales are expected to decline by 2% to 4%, contrasting with analyst forecasts of a 1.9% increase [2]. Margin and Profitability - The gross margin decreased by 130 basis points to 40.2%, indicating that each sale is generating less direct profit [2]. Regional Performance Concerns - Nike anticipates a 20% revenue decline in China for the current quarter, raising significant investor concerns as China is a strategically important market for the company [5]. - The decline in China is attributed to a shift in consumer preferences towards domestic athletic brands [5]. Management's Outlook - CFO Matthew Friend expressed confidence in Nike's long-term growth potential despite current challenges, stating that the company is executing with discipline and will continue to focus on profitable growth [6][5]. North American Market Trends - In contrast to the challenges in China, wholesale demand in North America is improving, with wholesale revenue rising 5% year over year to $6.5 billion, driven by strength in the domestic market [7].

Core Viewpoint - Nike's shares experienced a significant decline in after-hours trading due to a warning about a decrease in current-quarter revenue, highlighting ongoing challenges in the crucial China market and an inconsistent recovery [1] Group 1: Revenue Outlook - The company anticipates a decline in revenue for the current quarter, indicating potential financial difficulties ahead [1] - This forecast reflects the ongoing struggles in the Chinese market, which is a key area for Nike's sales [1] Group 2: Market Challenges - Persistent challenges in the China market are affecting Nike's overall performance, suggesting that the company may need to reassess its strategies in this region [1] - The uneven turnaround in business operations indicates that recovery efforts may not be yielding the expected results [1]

Group 1 - U.S. stock futures are trading higher on Wednesday morning, indicating a positive market sentiment [1] - Certain stocks are expected to attract investor attention today, although specific names are not mentioned [1] - The article suggests checking premarket coverage for more detailed insights on stock movements [1]

Core Viewpoint - Nike, Inc. is experiencing a significant decline in share price due to warnings of weak revenues in the fourth quarter and a notable drop in profit for the third quarter, attributed to higher tariffs and increased expenses impacting margins [1][4]. Financial Performance - In the third quarter, Nike reported a net income of $520 million, or $0.35 per share, which is a 35% decrease from $794 million, or $0.54 per share, in the previous year [4]. - The company's revenue for the third quarter slightly increased by 0.1% to $11.279 billion from $11.269 billion year-over-year, but fell by 3% on a currency-neutral basis [5]. - Pre-tax income decreased by 23% year-over-year to $650 million, with selling and administrative expenses rising by 2% to $3.98 billion [4]. Revenue Breakdown - Nike Brand revenues reached $11.0 billion, growing by 1% on a reported basis but declining by 2% on a currency-neutral basis, primarily due to decreases in EMEA and Greater China, offset by growth in North America [6]. - Wholesale revenues were $6.5 billion, up 5% on a reported basis and up 1% on a currency-neutral basis, mainly driven by growth in North America [6]. - NIKE Direct revenues fell to $4.5 billion, down 4% on a reported basis and 7% on a currency-neutral basis, influenced by a 9% decrease in NIKE Brand Digital and a 5% decrease in NIKE-owned stores [7]. Margin and Tariff Impact - Gross margin decreased by 130 basis points to 40.2% from 41.5% a year ago, primarily due to a 300 basis point impact from higher tariffs in North America [5]. - The company anticipates that the first quarter of fiscal 2027 will be the last quarter where higher tariffs significantly affect gross margin, with expectations for gross margin expansion beginning in the second quarter [3]. Inventory and Future Guidance - Nike's inventories decreased by 1% year-over-year to $7.5 billion, reflecting a reduction in units and product mix shifts, partially offset by increased product costs due to higher tariffs [8]. - The company plans to provide full-year and long-term guidance at its upcoming Investor Day in the fall [8].

Core Insights - Nike's recent fiscal third quarter results were disappointing, leading to a 9% drop in stock price, reaching an eight-year low [1][8] - Revenue remained flat at $11.28 billion, with a 3% decline in constant currency, while gross margin fell to 40.2% due to tariffs [2][3] - The company is facing challenges in its turnaround strategy, with management indicating a slower recovery than anticipated [5][9] Financial Performance - Operating income decreased by 23% to $635 million, and earnings per share fell 35% to $0.35, although this was above the consensus estimate of $0.28 [2][3] - Management expects a revenue decline of 2%-4% in the upcoming quarter, with continued challenges in China and Converse [6] - Gross margin is projected to return to growth by the second quarter of fiscal 2027, indicating a prolonged period of pressure on profitability [6][10] Market Trends - Running category revenue increased by over 20%, while North American footwear grew by 6%, despite profit declines due to tariffs and markdowns [7] - The company is struggling in China, experiencing a 7% revenue decline, but improved operating profit by 11% through better inventory management [7] - Investors are concerned about Nike's market share loss to emerging brands, raising questions about the company's long-term growth prospects [9] Management Strategy - Nike is focused on clearing excess inventory in classic styles to refocus on innovation and performance gear, which has impacted revenue negatively [5] - Management remains optimistic about leveraging success in running to boost other sports categories, particularly soccer [9][10] - The turnaround led by CEO Elliott Hill is still in its early stages, and further time is needed to assess its effectiveness [10]