Nike announced fiscal fourth-quarter results that surpassed analyst expectations, with the company reporting net income of $1.07 billion, or 72 cents per share, compared with $211 million, or 14 cents per share, in the prior-year period. Total revenue reached $10.97 billion, declining 1% from $11.10 billion in the comparable quarter. The strongest performance came from North America, its largest market, where revenue increased 3% to $4.83 billion, though this still fell short of analyst projections of $4.88 billion.
The Greater China market continued to face headwinds, with sales dropping 12% to $1.30 billion. However, this result exceeded Wall Street’s expectations of $1.24 billion. CEO Elliott Hill acknowledged during analyst discussions that the company’s performance in China remains below potential, particularly in Nike sportswear and Jordan streetwear categories, where consumer sell-through remains constrained and is affecting both current discounting strategies and future inventory commitments.
A significant portion of the quarter’s results was driven by a tariff refund of nearly $986 million following a Supreme Court decision that invalidated many of President Donald Trump’s global tariffs. This refund contributed 52 cents to earnings per share for the quarter and helped increase gross margin by 8.9% during the period. The company had collected over $300 million in cash related to tariff refund claims as of the quarter’s end.
Looking ahead, Nike reiterated previous guidance calling for earnings to remain relatively flat during the first two quarters of fiscal 2027, with gross margin expected to be slightly positive in the first fiscal quarter of that period. The company faces ongoing macroeconomic pressures affecting consumer spending, particularly in sportswear, which experienced double-digit percentage sales declines in the quarter. For the full fiscal 2026, Nike reported net income of $3.11 billion, or $2.10 per share, compared with $3.22 billion, or $2.16 per share, in the prior year.
Hill indicated that certain business segments previously targeted for turnaround efforts are beginning to show momentum. The company has undertaken significant organizational changes, including layoffs of 1,400 positions in April, and announced a planned leadership transition with former Pfizer executive David Denton assuming the CFO role effective Aug. 17.
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