Nike reports fiscal fourth-quarter earnings above estimates

Nike reported fiscal fourth-quarter revenue of $10.97 billion and adjusted earnings per share of 20 cents, both above consensus estimates. The company said gross margin rose 8.9 percent, driven mainly by an expected $986 million tariff refund after the Supreme Court struck down many of President Donald Trump's global duties.

That refund added 52 cents per share to results; analysts had excluded the gain from their forecasts.

Regional performance North American revenue increased 3 percent to $4.83 billion, falling short of the $4.88 billion expected by analysts. Greater China sales declined 12 percent to $1.30 billion, which still exceeded the $1.24 billion consensus. Net income reached $1.07 billion, or 72 cents per share, compared with $211 million, or 14 cents per share, a year earlier.

Outlook and operations For fiscal 2026, Nike recorded net income of $3.11 billion. The company reiterated prior guidance that earnings will be flattish through the first two quarters of fiscal 2027 and that gross margin in the first quarter of fiscal 2027 will be slightly positive.

Executives noted that the company had collected more than $300 million in cash from tariff refund claims by the end of the quarter. They also cited pressure on consumers worldwide and a double-digit decline in sportswear sales. Nike cut 1,400 positions in April as part of its second workforce reduction of the year.

It also announced a planned chief financial officer transition, with David Denton scheduled to replace Matt Friend effective in August.