Overview
- Revenue rose 1% to $12.4 billion in the fiscal second quarter ended November, topping analyst expectations.
- Gross margin fell about three percentage points to 40.6% and net income dropped roughly one-third to $792 million, with the company citing U.S. import tariffs and higher marketing spend.
- Greater China sales declined 17% as Nike reported lower store foot traffic and difficulty selling through inventories.
- Converse revenue fell 30%, and the company faces intensifying competition from newer footwear brands such as Hoka and On.
- Nike is rebuilding wholesale partnerships after its direct-to-consumer pivot, and it plans increased marketing in 2026 with new product lines, including a partnership tied to Kim Kardashian’s brand.