Nike reported a 1% decline in fourth-quarter revenue to about $10.97 billion, slightly above analyst estimates, as of June 30, 2026 [1, 2]. The company’s fiscal year 2026 net profit fell about 3% to $3.11 billion [3, 4]. However, Nike’s gross margin rose sharply by 8.9 percentage points to 49.2% in Q4, due primarily to an approximately $986 million tariff refund [2, 3]. Excluding the refund, core operating metrics showed limited improvement and remain challenged [2, 4].

Sales in China continued to decline between 12% and 17% year-on-year across sources, marking a significant drag on Nike’s performance [1, 5]. North American sales increased about 3% in the quarter, helping to offset some losses [1, 3]. Direct-to-consumer sales dropped roughly 7%, while wholesale sales grew about 4% [2, 4].

CEO Elliott Hill said the company faces uneven progress in its product turnaround but remains focused on rebuilding growth through sports-led innovation and stronger wholesale partnerships. He stated, "Company will fully commit to winning back the China market; progress is uneven but we are focused on sports-focused product lines" [6]. Hill also noted improvements in performance-oriented sports product sales despite continuing revenue headwinds [2].

CFO Matthew Friend commented, "Our consumer is under pressure around the world, and we can particularly see it having a larger impact on sportswear" [1]. On the outlook, he said revenue declines are expected through the first half of fiscal 2027 with no earnings growth until at least the second half, as Nike prioritizes marketplace health over near-term sales [7, 8].

Nike’s shares have fallen about 35% year-to-date in 2026 amid investor skepticism over the turnaround efforts [1, 7]. The company conducted a major workforce reduction in April 2026, cutting roughly 1,400 jobs, its second round of layoffs in a year [2, 8].

The company plans to launch more than a dozen new footwear styles to support its turnaround efforts [9]. Nike’s World Cup marketing generated strong brand exposure and solid sales momentum in North America despite not being an official sponsor [1, 5].

Nike is scheduled to appoint David Denton as its new CFO on August 17, 2026, succeeding Matthew Friend [6].