Core Insights - NIKE Inc. reported second-quarter fiscal 2026 results with revenues of $12.43 billion, a 1% year-over-year increase, and earnings per share (EPS) of 53 cents, a 32% decline from the previous year, but above the Zacks Consensus Estimate [1][2][9] Financial Performance - EPS of 53 cents fell 32% year-over-year but exceeded the Zacks Consensus Estimate of 37 cents [2] - Revenues improved 1% year-over-year to $12.43 billion, surpassing the consensus estimate of $12.14 billion [2] - NIKE Direct revenues decreased 8% to $4.6 billion, driven by a 14% drop in NIKE Brand Digital and a 3% decline in NIKE-owned stores [3] - Wholesale revenues increased 8% to $7.5 billion, primarily due to growth in North America [3] Regional Performance - North America revenues rose 9% year-over-year to $5.63 billion, despite a 10% decline in NIKE Direct [7] - EMEA revenues increased 3% year-over-year to $3.39 billion, but were flat on a currency-neutral basis [8] - Greater China revenues plummeted 17% year-over-year to $1.42 billion, with NIKE Digital down 36% [9] - APLA revenues decreased 4% year-over-year to $1.67 billion [10] Cost and Margin Analysis - Gross profit fell 6.3% year-over-year to $5.05 billion, with gross margin contracting 300 basis points to 40.6% due to higher product costs and inventory obsolescence [11] - Selling and administrative expenses rose 1% to $4.04 billion, while demand creation expenses increased 13% to $1.27 billion [12][13] Balance Sheet and Shareholder Returns - Cash and cash equivalents stood at $7 billion, down nearly 13% year-over-year, with short-term investments totaling $1.37 billion [14] - Inventories totaled $7.7 billion, down 3% year-over-year, and the company returned $598 million to shareholders in the fiscal second quarter [15] Future Outlook - Management projects Q3 revenues to decline low single digits, with modest growth in North America [16] - Anticipated gross margin decrease of 175-225 basis points, with SG&A expenses expected to rise in low single digits [17]

Key Takeaways NIKE saw a digital slowdown in Q1 2026, with NIKE Digital down 12% and Direct down 4%.NKE saw double-digit organic traffic declines after pulling back from heavy promotions and sneaker-led launch.NIKE Direct is not likely to return to growth in fiscal 2026 as traffic pressure limits revenue acceleration.NIKE, Inc.’s (NKE) digital ecosystem remains a powerful engagement engine and has long been positioned as a core pillar of its growth strategy. However, the company has been experiencing a sust ...