A Nike logo is displayed at a Nike store on February 5, 2026 in Austin, Texas.
Brandon Bell | Getty Images
Nike beat Wall Street’s quarterly earnings and revenue expectations on Tuesday, but showed a mixed picture in its two most important regional markets.
Nike’s largest market in North America continued to show steady growth, with revenue up 3% to $5.03 billion, but that was just below Wall Street expectations of $5.04 billion, according to StreetAccount.
Meanwhile, Nike’s market in Greater China continues to contract with revenue down 7% to $1.62 billion during the quarter. Still, that total beat analyst estimates by $1.50 billion, according to StreetAccount.
Shares fell about 3% in extended trading.
The picture was mixed as Nike beat expectations for the entire company on both revenue and bottom line, leaving investors with more questions about how long its turnaround will take.
Here are the results of the world’s largest sneaker company for its fiscal third quarter, compared to estimates from analysts surveyed by LSEG:
- Earnings per share: 35 cents versus 28 cents expected
- Income: $11.28 billion versus $11.24 billion expected
The company’s reported net income for the three months ended Feb. 28 was $520 million, or 35 cents per share. That’s down 35% from $794 million, or 54 cents per share, a year earlier. The drop came as Nike’s gross profit margin fell 1.3 percentage points to 40.2 percent, “primarily due to higher tariffs in North America,” the company said.
Sales remained stable at $11.28 billion, compared to $11.27 billion last year.
Nike continues to work on a colossal turnaround under CEO Elliott Hill. About a year and a half into his tenure, Hill has made great strides in fixing parts of the business, but he made it clear that it would take time for the entire company to improve given the size and complexity of the retailer.
He reiterated that expectation Tuesday, saying in a press release that “the pace of progress is different depending on the portfolio.”
“The areas we prioritized first continue to generate momentum,” Hill said. “The work is not done, but the direction is clear, our teams are acting with focus and urgency, and our foundation is becoming even stronger to build NIKE’s future.”
Chief Financial Officer Matt Friend said Nike’s turnaround efforts “will continue to impact results throughout the calendar year.”
Nike’s recovery already came at a difficult time, as a global trade war undermined its efforts to improve profitability and boost sales to inflation-weary shoppers. But now the sports company will have to contend with a new war in the Middle East that has already led to higher gasoline prices and is expected to drive up consumer prices further, which could push shoppers to cut back on purchases of must-haves, like new clothes and shoes, to save money elsewhere.
Hill has focused in part on revitalizing Nike’s business with wholesale partners rather than direct sales on its website and in stores. Wholesale revenues rose 5% to $6.5 billion.
Meanwhile, direct sales fell 4% to $4.5 billion.