NIKE, Inc. Q1 2026 Earnings Call Guidance
- Q2 revenues expected to be down low single digits, including one point of benefit from foreign exchange.
- Q2 gross margins expected to be down approximately 300 to 375 basis points.
- Q2 SG&A dollars expected to be up high single digits.
- Net headwind in fiscal 2026 gross margin increased from 75 basis points to 120 basis points due to new tariffs.
- Wholesale revenue expected to return to modest growth for fiscal 2026.
- NIKE Direct not expected to return to growth for fiscal 2026.
- North America expected to lead global recovery; Greater China and Converse to continue facing headwinds.
--> NIKE, Inc. Q1 2026 Earnings Call Summary
Date of Call: September 30, 2025
Financials Results:- Revenues up 1% on a reported basis, down 1% currency-neutral.
- NIKE Direct down 5%, NIKE Digital down 12%, NIKE stores down 1%.
- Wholesale grew 5%.
- Gross margins declined 320 basis points to 42.2%.
- SG&A down 1% on a reported basis.
- Earnings per share was $0.49.
- Inventory decreased 2% versus the prior year.
Guidance:- Q2 revenues expected to be down low single digits, including one point of benefit from foreign exchange.
- Q2 gross margins expected to be down approximately 300 to 375 basis points.
- Q2 SG&A dollars expected to be up high single digits.
- Net headwind in fiscal 2026 gross margin increased from 75 basis points to 120 basis points due to new tariffs.
- Wholesale revenue expected to return to modest growth for fiscal 2026.
- NIKE Direct not expected to return to growth for fiscal 2026.
- North America expected to lead global recovery; Greater China and Converse to continue facing headwinds.
- Focus on "Win Now" actions and "Sport Offense" strategy to drive growth.
- Running business grew over 20% this quarter, serving as a model for other sports.
- Challenges in Greater China with a 10% revenue decline; focus on sport-led growth.
- Efforts to elevate the marketplace in North America showing progress.
- Digital business repositioning to focus on full-price sales.
Sentiment Analysis:- Management expressed confidence in "Win Now" actions and "Sport Offense" strategy.
- Encouraged by progress in North America and running business.
- Recognized challenges in Greater China and digital business, but committed to long-term growth.
- Q&A tone was more defensive, especially regarding tariffs and Greater China challenges.
- Analysts were probing about margins, digital strategy, and China turnaround.
Q&A:
Question from Michael Binetti (Evercore ISI): Can you help us think about the spring order book and medium-term margin levels?
Response: Focus on sport-led product strategy and marketplace elevation. Margins pressured by tariffs, but confident in long-term double-digit margins.
Question from Piral Dadhania (RBC): How has September progressed, and is there evidence of pull forward in demand?
Response: Dynamic environment; no pull forward in Q1. Q2 revenue guided down due to digital headwinds and FX.
Question from Matthew Boss (JPMorgan): Can you elaborate on early wins and structural foundation for strategy expansion?
Response: "Win Now" actions and "Sport Offense" strategy are key. Focus on athlete-centered approach and integrated marketplace.
Question from Brooke Roach (Goldman Sachs): How much of digital traffic pressure is due to reduced promotions?
Response: Repositioning digital business to focus on full-price sales. Progress in North America and EMEA; Greater China remains challenging.
Question from Lorraine Hutchinson (Bank of America): Strategies for turning around digital business in China and store refresh timeline?
Response: Long-term growth opportunity in China; focus on sport-led strategy and marketplace elevation. Store refreshes ongoing.
Question from John Kernan (TD Cowen): Characterize inventory in wholesale channel and timing of discount fade?
Response: Inventory progress made; expect gross margin benefit in second half. Wholesale channel inventory healthy.