Core Insights - Nike reported Q2 FY2026 revenues of $12.427 billion, a 1% increase year-over-year, while net income decreased by 32% to $792 million [2][5]. Financial Performance - Revenues for the quarter were $12.427 billion, up 1% from $12.354 billion in the same quarter last year [4]. - Net income fell to $792 million, down 32% from $1.163 billion year-over-year [4][6]. - Gross profit was $5.045 billion, a decrease of 6% compared to $5.389 billion [4]. - Gross margin decreased to 40.6%, down from 43.6% year-over-year [4][6]. Brand Performance - The Nike brand generated $12.1 billion in revenue, a 1% increase, primarily driven by growth in the North American market, while Greater China and APLA regions saw declines [5]. - Converse brand revenue dropped by 30% to $300 million, with declines across all regions [5]. Regional Analysis - North America remains the core growth engine for Nike, while Greater China continues to struggle due to weak consumer confidence and increased promotional competition [5]. - EMEA markets showed steady performance, while APLA experienced slight declines [5]. Expense Overview - Total selling and administrative expenses were $4.039 billion, a 1% increase year-over-year [4]. - Demand creation expenses rose by 13% to $1.273 billion, attributed to increased brand and sports marketing costs [4][6]. - Operating overhead expenses decreased by 4% to $2.766 billion, benefiting from reduced salary-related expenses [4][6].