Nike said Q1 revenues for fiscal 2026 were $11.7 billion, compared to $11.6 billion in the prior-year quarter, and gross margin declined 320 basis points to 42.2%. The company cited higher discounts with wholesale partners, higher discounts in NIKE Brand factory stores, an increase in product costs including new tariffs and changes in channel mix as factors.

1. 01

   Nike said Q1 revenues for fiscal 2026 were $11.7 billion, compared to $11.6 billion in the prior-year quarter, and gross margin declined 320 basis points to 42.2%. The company cited higher discounts with wholesale partners, higher discounts in NIKE Brand factory stores, an increase in product costs including new tariffs and changes in channel mix as factors.

2. 02

   Nike said NIKE Direct revenues for Q1 decreased to $4.5 billion from $4.7 billion in the prior-year quarter, and on a currency-neutral basis NIKE Brand Digital sales declined 12% to $2.0 billion from $2.3 billion. NIKE Brand wholesale revenues were $6.8 billion, compared to $6.4 billion in the prior-year quarter.

3. 03

   Nike said it expects a gross incremental cost of approximately $1.5 billion on an annualized basis from new tariffs. The company added that while it is taking mitigation actions, it expects a negative impact on gross margin in fiscal 2026.

4. 04

   Nike said Converse revenues for Q1 decreased 28% on a currency-neutral basis, unit sales declined 22% and lower average selling price reduced revenues by approximately 6 percentage points. The company disclosed that Converse reported EBIT decreased 68%.

Key figures

Quarter ended August 31, 2025

Revenue

$11.7B

Net income

$727M

EPS

$0.49

Gross profit

$4.9B

Operating cash flow

$222M

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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