Nike focuses on North America, wholesale, and running amid Q1 results

Nike, Inc. has announced fiscal 2026 first-quarter revenues of 11.7 billion dollars, marking a 1 percent increase on a reported basis but a 1 percent decline on a currency-neutral basis for the quarter ended August 31, 2025. Diluted earnings per share (EPS) for the period came in at 49 cents, a 30 percent decrease year-over-year.

The results highlighted a strategic shift in sales channels, as wholesale revenues climbed 7 percent to 6.8 billion dollars, while Nike Direct revenues decreased 4 percent to 4.5 billion dollars, driven by a decline in the Nike brand digital segment.

Gross margin contracted by 320 basis points to 42.2 percent, primarily due to higher discounts, channel mix, and increased tariffs in North America.

Elliott Hill, president & CEO, NIKE, Inc., commented on the results, stating, “This quarter Nike drove progress through our Win Now actions in our priority areas of North America, Wholesale, and Running.” He added, “While we’re getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment.”

Despite the short-term margin pressures, which contributed to a 31 percent drop in net income to 0.7 billion dollars, the company remains focused on strategic execution.

Matthew Friend, executive vice president & CFO, Nike, Inc., acknowledged the volatility, noting, “I’m encouraged by the momentum we generated in the quarter, but progress will not be linear as dimensions of our business recover on different timelines.”