- Nike‘s first quarter revenue was $11.21 billion, a 4.3% decrease compared to the previous year, missing the expectation of $11.33 billion.
- Total Nike brand revenue came in at $10.95 billion, down 3.6% year-over-year, falling short of the estimated $11.09 billion.
- Revenue from North America increased by 2.1% year-over-year to $5.13 billion, slightly surpassing the expected $5.11 billion.
- EMEA revenue decreased by 4.7% to $3.18 billion, matching the forecast.
- Revenue from Greater China significantly declined by 22% to $1.18 billion, underperforming against the $1.31 billion estimate.
- Revenue in Asia Pacific & Latin America saw a small decline of 1.8% to $1.46 billion, aligning with the $1.45 billion prediction.
- Global Brands revenue dropped sharply by 33% to $6 million, under the expected $9.36 million.
- Converse revenue declined by 28% to $263 million, below the $293.3 million estimate.
- Gross margin improved to 42.8% from 42.2% the previous year.
- Earnings per share were slightly down to 48 cents from 49 cents year-over-year.
- Total Nike brand EBIT was $1.36 billion, a 3.1% decrease year-over-year but above the expected $1.3 billion.
- North America EBIT rose by 3.2% to $1.17 billion, outperforming the $1.14 billion expectation.
- EMEA EBIT slightly decreased by 1% to $728 million, yet exceeded the estimated $707.9 million.
- Greater China EBIT declined sharply by 34% to $248 million, below the $312.2 million estimate.
- Asia Pacific & Latin America EBIT fell by 7.4% to $324 million, a bit lower than the expected $330.1 million.
- Inventory levels decreased by 3.9% to $7.8 billion, slightly below the forecasted $7.96 billion.
- The effective tax rate increased to 22.7% from 21.1% year-over-year, higher than the anticipated 20.8%.
- Nike‘s leadership emphasized that the first quarter results were in line with expectations, benefiting from improved gross margins and disciplined cost management.
- Analyst recommendations consist of 15 buys, 25 holds, and 7 sells.
Nike on Smartkarma
Analyst coverage of Nike on Smartkarma reveals contrasting viewpoints from different research providers. Baptista Research‘s report, “Nike After Mbappé: Is Its Cultural Dominance Starting To Crack?” explores the impact of Kylian Mbappé leaving Nike for On Holding and the challenges Nike faces in rebuilding momentum. On the other hand, αSK Primers‘ report, “Primer: Nike (NKE US) – Jul 2026,” highlights Nike‘s enduring brand power amidst financial pressures and strategic shifts towards Direct-to-Consumer channels. Baptista Research‘s other reports delve into Nike‘s strategic moves in China and the company’s resilience amidst challenging market conditions with various tests ahead.
A look at Nike Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Nike seems to have a promising long-term outlook ahead. With a solid score of 4 for dividends, investors can expect decent returns in the form of regular dividend payments. Additionally, the company scores a 3 in both growth and resilience, indicating potential for steady growth and the ability to weather economic downturns.
Although the value, momentum, and growth scores are not exceptionally high, Nike‘s overall average score of 3 across the board suggests a well-rounded performance in key areas. As a company known for designing, developing, and marketing athletic products globally, Nike‘s diversified sales channels bode well for its future success in the sportswear market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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