NIKE reported flat revenues for Q3 FY2026, with a 3% decline on a currency-neutral basis, driven by a significant drop in Converse and NIKE Direct sales, partially offset by wholesale growth. Gross margin contracted notably due to higher tariffs, leading to a 35% decrease in net income and diluted EPS.
Wholesale revenues increased 5% on a reported basis and 1% on a currency-neutral basis, primarily driven by North America.
positiveInventories decreased 1% year-over-year, reflecting a decrease in units and product mix shifts.
positiveNIKE Brand revenues were up 1% on a reported basis, with growth in North America offsetting declines in EMEA and Greater China.
neutralTotal revenues were flat on a reported basis and down 3% on a currency-neutral basis.
negativeNIKE Direct revenues decreased 4% on a reported basis and 7% on a currency-neutral basis, with NIKE Brand Digital down 9% and NIKE-owned stores down 5%.
negativeConverse revenues declined 35% on a reported basis and 37% on a currency-neutral basis.
negativeGross margin decreased 130 basis points to 40.2%, primarily due to higher tariffs in North America.
negativeNet income decreased 35% to $0.5 billion, and diluted EPS decreased 35% to $0.35.
negativeThe effective tax rate increased significantly to 20.0% from 5.9% in the prior year period.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
North America | N/A | — | — | — | +3.0% |
Europe, Middle East & Africa | N/A | — | — | — | -7.0% |
Greater China | N/A | — | — | — | -10.0% |
Asia Pacific & Latin America | N/A | — | — | — | -2.0% |
Global Brand Divisions | N/A | — | — | — | -37.0% |
Converse | N/A | — | — | — | -37.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Meaningful actions taken to improve business health and quality.
Pace of progress varies across the portfolio, with prioritized areas showing momentum.
The work is not finished, but the direction is clear and teams are focused.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.