Nike Q1 2026: Revenue Up, Earnings Beat Expectations Amid China Challenges and Tariff Costs
Nike has reported a mixed bag of results for Q1 2026. Despite a 0.9% revenue increase to 11.7 billion USD, earnings per share of 0.49 USD surpassed expectations, driving a 5% pre-market stock rise. However, the company faces challenges in Greater China and potential 1.5 billion USD annual costs due to new U.S. tariffs.
Nike's wholesale business flourished with double-digit growth in Q1 2026, offsetting a 5% decline in Nike Direct. North America contributed with a 4% revenue growth. The Running segment performed exceptionally well, posting a 20% increase. Meanwhile, Greater China revenues decreased by 10%, posing structural issues for the company.
The results reflect a mix of positive and cautious investor reactions, with Nike's stock rising 5% in pre-market trading. The company's gross margin fell by 320 basis points to 42.2%, primarily due to tariffs, which are estimated to add around 1.5 billion USD in annual costs.
Under the leadership of CEO Elliott Hill, Nike navigates a complex landscape. While wholesale growth and strong segment performances buoy the company, challenges in Greater China and tariff-related costs loom large. Investors remain cautiously optimistic, with stock prices reflecting a mix of positive and cautious sentiments.
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