Overview
- Nike recognized a one-time $986 million IEEPA tariff-recovery benefit that pushed reported Q4 EPS to $0.72 and gross margin to 49.2%, but company figures show EPS would be about $0.20 and margin roughly 40.2% excluding the recovery.
- Core consumer channels were weak, with Nike Direct down about 7%, Nike Brand Digital down about 12%, Converse falling roughly 32%, and Greater China revenue down about 17%.
- Management kept guidance calling for low- to mid-single-digit revenue declines into the first half of fiscal 2027 and said it will continue inventory cleanup, wholesale rebalancing and product and local marketing investments.
- Analysts pared forecasts and price targets after the quarter, including Barclays cutting its target to $52, as firms signaled a longer path to a durable turnaround despite the headline beat.
- Nike still has strong liquidity of roughly $9 billion, is pressing ahead with its Sport Offense reorganization and is leaning on momentum in Nike Running and upcoming product and marketing initiatives to try to restore sustainable demand.