Nike reported flat sales in the second quarter of fiscal 2026, reaching $12.4 billion, beating analyst expectations of a slight decline. This comes after the brand achieved its first period of growth in five consecutive quarters in the previous quarter.
CEO Elliot Hill expressed optimism about Nike’s comeback, stating, “Nike is in the middle innings of our comeback. We are making progress in the areas we prioritized first and remain confident in the actions we’re taking to drive the long-term growth and profitability of our brands.” Hill, who unveiled Nike’s ‘Win Now’ strategy a year ago, emphasized the focus on increasing innovation, rebuilding wholesale distribution, and enhancing marketing efforts while re-focusing on sport across the brand.
Nike’s direct-to-consumer sales totaled $4.6 billion, down 9% year-on-year, while wholesale revenues reached $7.5 billion, up 8% year-on-year, driven by growth in North America. The Americas saw a 9% increase to $5.6 billion, while EMEA revenues fell 1% to $3.4 billion. Greater China revenues were down 16% to $1.4 billion, and Asia Pacific and Latin America revenues decreased by 4% to $1.7 billion.
Hill acknowledged the need to reset Nike’s position in the Chinese market, stating, “China continues to be one of the most powerful opportunities in sport.” He emphasized the restructuring of Nike’s operations in China to position the brand for growth and return it to a beloved premium and innovative status.
Matthew Friend, EVP and CFO, highlighted the resilience of Nike’s portfolio in the second quarter, managing headwinds from repositioning the business in a dynamic operating environment. Looking ahead, Nike anticipates second-quarter revenues to decrease by low-single digits, with moderate growth in North America, despite higher product costs due to tariffs.
In conclusion, Nike’s strategic initiatives, including the ‘Win Now’ strategy and focus on key markets like North America and China, are setting the brand up for long-term success and growth. The company remains committed to innovation, brand building, and delivering value to its customers in an ever-evolving marketplace.
