Nike exceeded expectations in its fiscal first-quarter 2026 earnings report, with $0.49 per share on $11.7 billion in revenue. Despite a 1% revenue increase, net profit dropped 31% to $700 million. Jefferies, Zacks, and FactSet had lower EPS and revenue estimates, predicting a 5% decline in sales.

Nike Brand generated $11.4 billion in revenue, with North America growth offset by a decline in Greater China. Nike Direct revenue totaled $4.5 billion, Wholesale revenue reached $6.8 billion, but Converse revenue dropped 27%. CEO Elliott Hill highlighted progress in North America, Wholesale, and Running.

Gross margin decreased to 42.2% due to lower average selling prices from higher discounts and tariffs in North America. Inventory dropped 2% to $8.1 billion, impacted by higher tariffs. Jefferies expected a rebound from Nike’s innovation and retail momentum, despite tariff and inventory challenges.

Nike’s CFO Matthew Friend acknowledged non-linear progress as different parts of the business recover on varied timelines. Despite external headwinds, Nike remains focused on controlling what they can. Jefferies analysts advised investors to “just buy it” ahead of the earnings release.

Read more at Yahoo Finance: Nike’s first-quarter earnings beat Wall Street expectations