Nike reports struggling revenues as it readies for 'comeback'

Nike is navigating the "middle innings" of its comeback. For fiscal Q2 2026, the sportswear giant posted flat revenues of $12.4 billion as wholesale growth helped offset declines in its direct-to-consumer channels.

The sportswear giant posted second-quarter revenues of $12.4 billion (£9.27 billion) for the period ended 30 November 2025, up 1%. Wholesale revenues increased 8% to $7.5 billion (£5.6 billion), while Nike Direct revenues fell 8% to $4.6 billion (£3.4 billion), reflecting declines across both digital and Nike-owned stores.

Gross margin declined by 300 basis points to 40.6%, primarily driven by higher tariffs in North America. Net income fell 32% to $0.8 billion (£0.6 billion), with diluted earnings per share down 32% to $0.53 (£0.40).

Elliott Hill, President and CEO of Nike, said: "Nike is in the middle innings of our comeback.We are making progress in the areas we prioritised first and remain confident in the actions we're taking to drive the long-term growth and profitability of our brands."

"Fiscal 26 continues to be a year of taking action through Win Now, including realigning our teams, strengthening partner relationships, rebalancing our portfolio, and winning on the ground. We're finding our rhythm in our new sport offence, and setting ourselves up for the next phase of athlete-centred innovation in an elevated and integrated marketplace."

The results underline Nike’s recalibration of its distribution strategy. After several years of aggressively prioritising direct-to-consumer, wholesale once again delivered growth in the quarter, particularly in North America. By contrast, Nike Direct was dragged down by a 14% decline in Nike Brand Digital and a 3% decrease in Nike-owned stores.

Nike Brand revenues rose 1% to $12.1 billion (£9 billion), driven by growth in North America, partially offset by declines in Greater China and Asia Pacific and Latin America. Converse continued to struggle, with revenues down 30% to $300 million (£224 million).

Chief Financial Officer, Matthew Friend, added: "In the second quarter, we demonstrated the resilience of our portfolio, delivering modest top-line reported growth while managing headwinds from repositioning our business in a dynamic operating environment.

"We are making the shifts required to position our portfolio for a full recovery and driving real-time decisions in service of the long-term health of our brands."

While the quarter signals stabilisation rather than growth, Nike’s results highlight the scale of its ongoing reset. As Hill positions the business for its "next phase of athlete-centred innovation", the coming quarters will be closely watched for signs that the brand’s renewed focus on wholesale, portfolio balance and execution is translating into more consistent performance.