NIKE, Inc. Reports Fiscal 2026 Second Quarter Results

Core Insights - NIKE, Inc. reported fiscal 2026 second quarter financial results, showing modest growth despite challenges in the operating environment [1][2] - The company is focused on long-term growth and profitability through strategic actions, including team realignment and strengthening partner relationships [2] Financial Performance - Second quarter revenues reached $12.4 billion, a 1% increase on a reported basis and flat on a currency-neutral basis [7][8] - NIKE Brand revenues were $12.1 billion, also up 1% on both reported and currency-neutral bases, driven by growth in North America [8] - Wholesale revenues increased to $7.5 billion, up 8% on both reported and currency-neutral bases, primarily due to North America [8] - NIKE Direct revenues fell to $4.6 billion, down 8% on a reported basis and down 9% on a currency-neutral basis, attributed to a 14% decrease in NIKE Brand Digital [8] - Gross margin decreased by 300 basis points to 40.6%, mainly due to higher tariffs in North America [7][8] - Net income was $0.8 billion, a 32% decline, with diluted earnings per share at $0.53, also down 32% [8][10] Shareholder Returns - The company returned approximately $598 million to shareholders through dividends in the second quarter, marking a 7% increase from the previous year [4] Balance Sheet Overview - As of November 30, 2025, total assets were $37.8 billion, a slight decrease from $37.9 billion the previous year [12] - Cash and equivalents and short-term investments totaled $8.3 billion, down approximately $1.4 billion due to cash dividends, bond repayments, and capital expenditures [8][11] - Inventories decreased by 3% to $7.7 billion, reflecting a reduction in units [8][11] Segment Performance - North America segment revenues increased by 9% to $5.6 billion, driven by footwear and apparel growth [12] - Greater China segment revenues fell by 17% to $1.4 billion, with significant declines in footwear and equipment [12] - Europe, Middle East & Africa segment revenues grew by 3% to $3.4 billion, with mixed performance across categories [12]