Nike (NKE) investor relations material

Executive summary

• Fiscal 2026 saw foundational improvements, emphasizing the Sport Offense model, Win Now priorities, and structural changes for long-term growth.

• Full year revenues reached $46.4 billion, flat year-over-year on a reported basis and down 2% currency-neutral.

• Performance business grew mid-single digits, led by Running, Football, and Basketball, while Sportswear and Jordan streetwear remained challenged.

• Investments in supply chain, technology, and marketplace elevation were prioritized, with over 15,000 wholesale spaces and 150 Nike Direct stores refreshed.

• Greater China underwent a comprehensive reset, focusing on local product creation and premium positioning.

Financial highlights

• Q4 revenue was $11.0 billion, down 1% reported and 4% currency-neutral; full-year revenue flat reported, down 2% currency-neutral.

• Gross margin for Q4 was 49.2%, up 890 bps, including a one-time $986M tariff recovery benefit; excluding this, gross margin was 40.2%, down 10 bps.

• Q4 net income was $1.1 billion, up 407% due to the tariff recovery; full-year net income was $3.1 billion, down 3% year-over-year.

• Q4 EPS was $0.72, including a $0.52 benefit from tariff recovery; full-year EPS was $2.10, or $1.58 excluding tariff benefit.

• Inventory flat year-over-year at $7.5 billion; significant progress in aged inventory reduction in Greater China.

Outlook and guidance

• Revenue expected to be down low to mid-single digits in the near term, with Q2 sequentially weaker due to prior year anomalies.

• Gross margin expansion anticipated to begin in Q1 FY27, with continued SG&A discipline.

• Tariff rates assumed to rise from 10% to 15% after July; full-year tax rate expected in low 20% range.

• Earnings expected to be flattish over the next three quarters, excluding tariff recovery benefit.

• Management remains focused on improving profitability, scaling performance product wins, and driving long-term growth.