Nike exceeded Wall Street expectations in its fiscal fourth quarter, reporting earnings per share of 20 cents versus the anticipated 13 cents, and revenues reaching $10.97 billion, slightly above the $10.86 billion forecast. Despite the positive results, the company faced a 12% sales decline in its key Greater China market, with revenues falling to $1.30 billion. Nike’s North American revenue grew 3% to $4.83 billion but slightly missed analyst projections. CEO Elliott Hill acknowledged the challenges in the China market, particularly in the sportswear and Jordan streetwear segments, but affirmed a firm commitment to regaining momentum there.

A significant contributor to Nike’s quarterly performance was an expected tariff refund of nearly $986 million granted after the Supreme Court invalidated many of the tariffs imposed during the Trump administration. This refund boosted Nike’s gross margin by 8.9% and added 52 cents to earnings per share for the quarter, although analysts excluded this from adjusted earnings. As of the quarter’s end, Nike had collected over $300 million in cash related to these tariff refunds. The company reported net income of $1.07 billion, or 72 cents per share, far surpassing the $211 million, or 14 cents per share, earned in the same period last year.

Looking at the full fiscal year 2026, Nike posted net income of $3.11 billion, or $2.10 per share, compared to $3.22 billion, or $2.16 per share, in 2025. Revenue slightly declined by 1% to $10.97 billion. The company maintained its guidance, expecting earnings to remain “flattish” during the first half of fiscal 2027 and anticipating a modest positive shift in gross margin for the first quarter of the new year. CFO Matt Friend emphasized ongoing global consumer pressures negatively impacting segments such as sportswear, which experienced double-digit sales drops.

Nike's leadership continues to focus on repositioning the brand for growth amid challenging economic factors including geopolitical tensions and inflationary pressures. The company recently reduced its workforce by 1,400 roles and announced a CFO transition with former Pfizer executive David Denton scheduled to assume the role in August. On a positive note, Nike has leveraged the World Cup hosted in North America to gain significant advertising traction despite not being an official sponsor. CEO Hill described their approach as a sustained campaign intended to build long-term engagement rather than a one-time promotional effort.