A shopper carries a Nike bag on Wednesday, December 17, 2025 in San Francisco, California, USA.
David Paul Morris | Bloomberg | Getty Images
nike on Thursday reported quarterly profit and sales that beat Wall Street expectations, as strong performance in North America offset sales declines in China.
The company’s shares fell more than 4% in extended trading Thursday as investors digested the continued hit from China’s economic slowdown and Nike’s high tariffs.
Here’s what Nike will report in Q2 2026, according to LSEG consensus estimates.
Earnings per share: 53 cents vs. 38 cents expected Earnings: $12.43 billion vs. $12.22 billion expected
The sports apparel retailer announced that sales in North America rose 9% to $5.63 billion. However, sales in the Greater China market fell 17% to $1.42 billion.
The sneaker company is just over a year into CEO Elliott Hill’s turnaround strategy, which is focused on growth and regaining market share, clearing old inventory and investing in wholesale relationships.
“Nike is in the middle stages of our resurgence,” Hill said in a statement Thursday. “We are making progress in the areas we first prioritized and remain confident in the actions we are taking to drive long-term growth and profitability for our brand.”
The company said wholesale revenue rose 8% to $7.5 billion in the quarter. But direct sales, which Nike focused on in the years before Mr. Hill took over and moved away from that strategy, fell 8% to $4.6 billion.
Nike is also feeling the impact of the tariff hike. The company said Thursday that its gross profit decreased by 3 percentage points and inventories decreased by 3%, mainly due to the tariff hike.
The sneaker company also reported weakness in its Converse brand. Nike announced that Converse sales fell 27% in the first quarter, and on Thursday reported that the sneaker brand’s sales were down 30%.
Hill said Nike made a leadership change earlier this month to “remove layers.” The company has announced that Chief Commercial Officer Craig Williams will be leaving the sneaker giant as part of its “Win Now” strategy.
Hill described the revamp as a move “about growth and offense.”
“Taken together, these changes amount to eliminating layers and improving Nike’s position to continue to make an impact in a way that only Nike can,” Hill said in a statement at the time.
Nike stock has fallen more than 13% since the beginning of the year as of Thursday’s close.
