Margin Headwinds Strengthen: Will Tariff Mitigation Be Enough for NKE?

Key Takeaways NKE's Q2 fiscal 2026 gross profit fell 6.3% as gross margin dropped 300 bps to 40.6% amid cost pressures.Tariffs, inventory obsolescence in Greater China and weak demand weighed on margins and channel mix.NKE is mitigating tariffs via manufacturing diversification, selective price hikes and cost controls.NIKE, Inc. (NKE) continues to face considerable margin pressure stemming from higher tariffs, unfavorable channel mix and soft demand in key markets. These pressures are further compounded by ...