Excluding a one-time tariff recovery benefit, Nike earned 20 cents a share in its fiscal fourth quarter, beating estimates of 13 cents
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Nike $NKE reported fiscal fourth-quarter earnings of 72 cents per diluted share on Tuesday, a figure that included a 52-cent benefit tied to the anticipated recovery of import tariffs — without which underlying results remained weak, with revenue falling and sales in Greater China declining sharply.
Strip out the tariff windfall and Nike's per-share profit came to 20 cents. That topped Wall Street's consensus estimate of 12 cents on revenue of $10.85 billion, according to Reuters.
A $986 million anticipated refund of duties collected under the International Emergency Economic Powers Act provided the primary lift to the headline number, pushing gross margin up roughly 900 basis points to 49.2%. Without that item, the operating picture remained under pressure, the company said.
Greater China revenue dropped 17% when measured on a constant-currency basis, a sharper deterioration than the 10% slide recorded in the preceding quarter; on a reported basis the decline was 12%. Local brands have gained ground at Nike's expense as shoppers gravitate away from the American label, the company said. The region generates approximately 15% of Nike's total annual sales, according to the outlet.
North America was a relative bright spot, with revenue rising 3% in the quarter. Wholesale revenues rose 4% to $6.6 billion, while Nike Direct revenues fell 7% to $4.1 billion, reflecting a 12% drop in digital sales and a 7% decline in Nike-owned stores. Converse revenue fell 32% to $244 million.
For the full fiscal year ended May 31, 2026, Nike reported revenue of $46.4 billion, flat on a reported basis and down 2% on a currency-neutral basis. Full-year net income was $3.1 billion, down 3%, with diluted earnings per share of $2.10.
"We continue to face top-line headwinds," said Elliott Hill, Nike's president and CEO, in a statement. Outgoing CFO Matthew Friend cautioned that sell-through continues to struggle and offered no relief for investors, saying conditions in the marketplace were unlikely to get better through at least the first half of fiscal 2027.
Shares dropped about 4% in after-hours trading before paring part of the decline. The stock has declined more than 35% so far in 2026.
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