Nike (NKE) Q2 2026 earnings

Nike Its quarterly earnings and revenue on Thursday beat Wall Street forecasts; Strength in North America helped offset the decline in Chinese sales.

The company’s shares lost more than 6% in extended trading Thursday as investors digested weakness in China and the sustained hit Nike has taken from higher tariffs.

Here’s what Nike reported for the second fiscal quarter of 2026, based on LSEG’s consensus estimates:

• Earnings per share: 53 cents 38 cents expected
• Revenues: 12.22 billion dollars is expected compared to the expectation of 12.43 billion dollars

The sportswear retailer said sales in North America rose 9% to $5.63 billion. However, revenue in the Greater China market fell 17% to $1.42 billion.

The sneaker company is a little more than a year into CEO Elliott Hill’s transformation strategy, which focuses on regaining growth and market share, clearing out obsolete inventory and investing in wholesale relationships.

“FY26 continues to be a year in which we take action to right-size our classic business, return Nike digital to a world-class experience, diversify our product portfolio, deepen our consumer connection, strengthen our partner relationships, and realign our teams and leadership,” Hill said on a call with analysts. “And I say we are in the middle of our comeback.”

“We are nowhere near our potential,” he added.

Nike’s improvements in the China market “have not occurred at the level or pace that would lead to broader change,” Hill said, but the country remains one of the company’s strongest long-term opportunities.

Nike expects fiscal third-quarter revenues to decline by a low-single-digit percentage, with moderate growth in North America. It also predicts gross margins will fall 1.75 to 2.25 percentage points, including a 3.15 percentage point hit from tariffs.

The company said wholesale revenues rose 8% in the quarter to $7.5 billion. But direct sales, which had been Nike’s focus in the years before Hill took over and moved away from the strategy, fell 8% to $4.6 billion.

Nike is also feeling the impact of tariff increases. It said Thursday that gross margin fell 3 percentage points and inventories also fell 3 percent due to particularly high tariffs.

Sneaker company Converse is also reporting weakness in its brand. Nike said Converse sales fell 27% in its first fiscal quarter; On Thursday, the sneaker brand reported a 30% drop in revenue.

Despite the weakness in some parts of Nike’s business, the company highlighted some areas of strength and new initiatives ahead. Nike.com posted its best Black Friday ever this year, CFO Matt Friend said on the call, thanks in part to the launch of the Air Jordan “Black Cat.”

Hill said during the call that Nike also plans to launch a new footwear platform called Nike Mind in January, aimed at helping athletes prepare for performance and competition.

Nike is making bigger internal changes under Hill.

Earlier this month, Nike made leadership changes to “remove layers,” according to Hill. The company announced that Chief Commercial Officer Craig Williams will be leaving the sneaker giant as part of its “Win Now” strategy.

Hill described the change as a move “about growth and offense.”

“Collectively, these changes mean we are removing layers and better positioning Nike to continue to make an impact the way only Nike can,” Hill said in a statement at the time.

Nike shares are down more than 13% this year as of Thursday’s close.