Nike, Inc. (NKE)

Nike reported on 1 October 2026 that revenue for the three months to 31 August was $11.2 billion, down 4 percent from a year earlier 2. Net income, the profit left after every cost and tax, was $712 million against $727 million 2. Gross margin, the share of revenue left after the cost of the goods, rose 60 basis points to 42.8 percent, mainly on lower warehousing and logistics costs 2.

The fall came from outside North America, where revenue rose 2 percent to $5.13 billion 2. Greater China fell 22 percent in dollars and 26 percent at constant currency, and Converse fell 28 percent to $263 million 2. The chief executive, Elliott Hill, said the performance business "is not yet large enough to offset the pressure" from Sportswear, Jordan Brand and Greater China 4.

The same day Nike set out Pace, a program to fold its four regions into three, open a campus in India and cut roles 1. The company expects about $1.0 billion of pre-tax charges, mostly severance, and about $2.5 billion of cumulative savings through fiscal 2031 1. It expects fiscal 2027 revenue to decline by a high-single-digit percentage 2.

Nike told Fox Business it will give more detail on the restructuring at its investor day on 16 and 17 November 8. That meeting is where the company says it will set out its long-term financial goals 48.

In fiscal 2020, the year to May 2020, revenue fell 4 percent to $37.4 billion 14. Sales had grown 7 percent in the first nine months, then dropped 38 percent in the fourth quarter as COVID-19 closed stores 14. Digital sales grew 49 percent that year while wholesale fell 7 percent 14.

In June 2020 Nike named its next phase Consumer Direct Acceleration, leading with its own digital platforms and stores and fewer, selected wholesale partners 14. The aim, in the filing's words, was more premium, consistent and seamless experiences for shoppers 14.

Demand came back fast: revenue rose 19 percent to $44.5 billion in fiscal 2021 and reached a record $46.7 billion in fiscal 2022 13. Nike Direct grew 14 percent in fiscal 2022, led by an 18 percent rise in digital sales, while wholesale slipped 1 percent 13. By then Nike Direct was about 42 percent of Nike Brand revenue, and Nike had cut its number of wholesale accounts 13.

Revenue then flattened, at $51.2 billion in fiscal 2023 and $51.4 billion in fiscal 2024 12. In fiscal 2024 gross margin rose 110 basis points to 44.6 percent on price rises and cheaper ocean freight 12. Nike also took a $443 million restructuring charge that year to streamline the organization 12.

In summer 2024 the classic lifestyle shoes Nike leaned on, such as the Air Force 1 and Air Jordans, began to fall out of style, Sportico reported 6. On 19 September 2024 the board named Elliott Hill, a Nike veteran who had retired in 2020, chief executive from 14 October, replacing John Donahoe 15. Fiscal 2025 revenue fell to $46.3 billion from $51.4 billion, and Nike Direct fell 13 percent 11.

The annual report for fiscal 2025 put the fall down to fewer shoppers on Nike Direct and to Nike's own choice to cut the supply of some footwear through markdowns and discounts 11. Hill's plan, which Sportico describes as a return to sport and to wholesale partners, took some $2 billion of classic lifestyle shoes out of the market 611.

Fiscal 2026 held revenue flat at $46.4 billion: North America grew 5 percent, with wholesale up 14 percent, while Greater China fell 11 percent and Converse 31 percent 3. Net income slipped to $3.1 billion from $3.2 billion, after $385 million of severance costs and a $986 million benefit from recovered tariffs 3. On 27 February management had approved changes expected to bring about $300 million of pre-tax charges, mostly severance 23.

Two former engines shrank: Jordan Brand sales fell from $8.7 billion in fiscal 2024 to $7.0 billion in fiscal 2026, and Greater China from $7.5 billion to $5.8 billion 3. Sportico reported that Greater China revenue had peaked in 2021 at $8.3 billion 7.

What Nike sells

Nike designs and markets athletic footwear, apparel, equipment and services under the Nike, Jordan and Converse brands, and independent contractors make nearly all of it 3. In fiscal 2026 Nike Brand footwear brought in $29.5 billion, apparel $13.4 billion and equipment $2.2 billion 3. It sells through its own stores, website and app, which it calls Nike Direct, and to wholesale accounts such as sporting goods stores 3.

Performance: running, football, basketball

Nike calls gear built for a sport its performance business, and Hill said it reached $16 billion of sales last fiscal year and grew by a high-single-digit percentage in the first quarter 4. Running grew by double digits, and Hill said the Vomero shoes nearly tripled Nike's share of maximum-cushion running over the past year 4.

In September Nike unveiled the Alphafly 4 marathon shoe 4. It then added the Nike Apex, which Hill said gives 40 percent more energy than the Alphafly 3 4.

OutdoorGearLab gave the Vomero 18, listed at $155, an overall score of 73 and called it "a comfy workhorse that feels best when running slow and steady paces" 18. Tom's Guide called it "a max-cushioned, everyday running shoe" but listed its weight among the reasons to avoid it 19.

In football, Hill said Nike doubled its World Cup team kit sales against the 2022 tournament 4. In basketball the Caitlin 1 launched in 5,000 doors, which Hill called the largest women's signature shoe launch in Nike's history 4.

Sportswear and Jordan Brand

Nike Sportswear, the lifestyle line, made up just under half of first-quarter revenue and fell by a low-double-digit percentage, Hill said 4. Nike cut revenue from the Dunk sneaker by nearly half on purpose, a headwind of about $200 million, and some older shoes sold below plan 4. Jordan Brand, sold under the Jumpman logo, was 13 percent of the business and fell by a mid-teens percentage as Nike cut retro launches 4.

Converse

Converse, based in Boston, sells casual sneakers under names such as Chuck Taylor and All Star, and licensees pay it royalties in some territories 3. Its revenue fell 31 percent to $1.17 billion in fiscal 2026 3. Its earnings before interest and taxes fell 93 percent to $18 million, as discounts rose during what Nike calls a strategic reset 3.

Converse fell another 28 percent in the quarter to 31 August 2.

Where Nike sells

North America is the largest region, with $20.5 billion of revenue in fiscal 2026 3. Europe, the Middle East and Africa brought $12.6 billion, Asia Pacific and Latin America $6.2 billion and Greater China $5.8 billion 3. The United States made up about 44 percent of revenue, and its three largest customers took about 29 percent of sales there 3.

Nike Brand and Converse ran 347 stores in the United States and 641 elsewhere, most of them factory stores 3.

Plants and suppliers

Contract factories in Vietnam, Indonesia and China made about 52, 27 and 16 percent of Nike Brand footwear in fiscal 2026 3. Nike's own subsidiary Air Manufacturing Innovation makes the Air-Sole cushions near Beaverton, in Vietnam and in Missouri 3. The headquarters is the 400-acre Philip H. Knight Campus near Beaverton, Oregon, with about 10,600 employees 3.

People

Elliott Hill, who joined Nike in 1988, has been president and chief executive since 2024 3. Mark Parker, chief executive from 2006 to 2020, is executive chairman 3. Nike counted about 73,000 employees on 31 May 2026, store and part-time staff included 3.

David Denton, finance chief of Pfizer since May 2022, became chief financial officer in August 2026, replacing Matthew Friend 16. On 15 September 2026 the board grew to twelve directors with Alexandre Arnault, deputy chief executive of Moet Hennessy at LVMH 9.

Rivals

The annual report names adidas, Anta, ASICS, Deckers, Li Ning, lululemon athletica, New Balance, On, Puma and Under Armour among its competitors 3. Sportico reported that On and Hoka gained with shoppers when Nike pulled out of major retailers under its previous chief executive 6. Reuters reported that the footballer Kylian Mbappe ended a two-decade partnership with Nike in September and joined On 5.

Problems on file

Belgian customs authorities claim Nike underpaid duties on imports from fiscal 2018, and Nike is appealing while saying it cannot put a range on the loss 21. Nike also told the SEC it has issued bank guarantees in order to appeal 21.

In China, most of Nike's 16 retail partners stop selling its goods online from 1 January 2027, leaving Nike's own site and app and its official stores on Tmall, JD.com and Douyin, Retail Gazette reported 17. Hill said the clean-up will take multiple seasons and hurt revenue and profit in China in the near term 4.

The umbrella, in words

Nike, Inc. owns the Nike and Jordan brands, and Converse is a wholly owned subsidiary 3. Exhibit 21 lists twelve significant subsidiaries, among them Converse Inc., NIKE Commercial (China) Co., Ltd. and NIKE Europe Holding in the Netherlands, and says smaller ones are left out 20.

Nike owns the Beaverton campus and its main distribution centers outside the United States, in Belgium, China, Japan and Korea 3. Sojitz Corporation of America holds all of Nike's redeemable preferred stock and has financed its imports and exports since 1972 3.

Control sits with the Class A shares, which elected eight of the eleven directors at the 8 September 2026 meeting, while the listed Class B shares elected three 10. Swoosh, LLC, formed in 2015 by the co-founder Philip Knight, holds 221,750,000 Class A shares, 78.8 percent of the class 10. Philip Knight also holds 27,479,487 Class A shares in his own name, 9.8 percent, and is chairman emeritus 10.

Among Class B holders, the proxy lists Vanguard Capital Management with 7.5 percent and State Street Corporation with 5.0 percent 10.

For fiscal 2027, the year that ends in May 2027, Nike expects revenue to decline by a high-single-digit percentage and an effective tax rate in the mid-20 percent range 2. It guides to adjusted diluted earnings per share of $1.15 to $1.35, which leaves out about $0.15 of Pace restructuring costs 2.

Denton said the second quarter carries a revenue headwind of about 400 basis points, because it is set against heavy promotions in Europe and larger shipments to North American retailers a year earlier 4. He said Nike expects EBIT, earnings before interest and taxes, to decline by a greater percentage than revenue 4.

Denton said the outlook assumes China "actually gets worse from a revenue perspective for the balance of this year" 4. The annual report already said Nike expects negative impacts from Greater China and Converse throughout fiscal 2027 3.

Under Pace, Nike expects about $0.3 billion of charges in fiscal 2027 and the rest through fiscal 2031, mostly paid in cash 1. Reuters reported that most of the $2.5 billion of savings is set for fiscal 2029 and 2030 5. Hill wrote to employees that decisions on affected roles begin in 2027, Fox Business reported 8.

Sportico reported that the three regions, the Americas, Asia Pacific and Greater China, and EMEA, take over in fiscal 2028, which begins in June 2027 67. From then Nike plans to report Greater China inside the wider Asia Pacific segment, led from Singapore, Sportico reported 7.

Nike's investor day runs on 16 and 17 November, Fox Business reported, and Hill said Nike will give a clearer view there of its long-term growth plans 84. Nike's $1 billion credit line signed in March 2026 matures on 5 March 2027 unless extended 22.