Nike Inc. saw shares drop 4% despite beating earnings estimates in Q2 of fiscal 2026. Net income fell 32% to $792 million, with diluted earnings per share at 53 cents. Company reported net sales of $12.43 billion, up 1% from last year.

Nike brand’s Q2 revenues reached $12.1 billion, up 1%, thanks to growth in North America. Direct revenues dropped 8% to $4.6 billion, wholesale channel saw an 8% increase to $7.5 billion. Converse revenues were $300 million, down 30%.

Footwear revenues stayed flat at $7.7 billion, while apparel sales increased 4% to $3.9 billion. CEO Elliott Hill stated Nike is in the “middle innings” of its comeback, confident in long-term growth strategies. CFO Matthew Friend highlighted the company’s resilience in managing headwinds.

Read more at Yahoo Finance: Nike’s North American Sales on the Upswing, But Q2 Results Impacted by China Declines