- Nike‘s Q2 revenue reached $12.43 billion, a 0.6% year-over-year increase, surpassing the estimated $12.24 billion.
- Direct revenue dropped 8% year-over-year to $4.6 billion, falling short of the estimated $4.75 billion.
- Wholesale revenue rose 8.7% year-over-year, achieving $7.5 billion and beating the forecasted $7.12 billion.
- Nike brand digital sales decreased by 14%, an improvement from the 21% decline recorded previously year-over-year.
- The gross margin was 40.6%, matching the estimates but down from 43.6% year-over-year.
- Earnings per share stood at 53 cents, compared to 78 cents year-over-year.
- Nike‘s inventory was valued at $7.73 billion, a 3.2% decrease year-over-year, below the expected $7.8 billion.
- The cash and cash equivalents totalled $6.97 billion, experiencing a 13% drop year-over-year, against the estimated $7.28 billion.
- The effective tax rate increased to 20.7% compared to the 17.9% from the previous year, slightly above the estimated 20.5%.
Nike on Smartkarma
Analyst Coverage of Nike on Smartkarma
On Smartkarma, independent analysts like Baptista Research are closely monitoring Nike‘s performance and strategic moves. In a bullish sentiment report titled “Nike Unveils Bold Turnaround Plan: COO Named, CCO & CTO Out!”, Baptista Research highlighted NIKE, Inc.’s first-quarter fiscal 2026 results, showcasing a transformative phase with a focus on the ‘Win Now’ strategy. The company, led by Elliott Hill, aims to realign its workforce under the ‘Sport Offense’ strategy to drive innovation and brand differentiation across its core brands, including NIKE, Jordan, and Converse.
Additionally, another bullish report by Baptista Research, “Nike’s Digital Pivot – Can Cutting Promotions & Going Full-Price Pay Off Long Term?”, discussed Nike‘s complex financial results for the first quarter of fiscal 2026. The company’s emphasis on the ‘Win Now’ strategy, particularly in sports, running, and wholesale partnerships, indicates a mix of progress and challenges as Nike navigates towards long-term success in a dynamic market environment.
A look at Nike Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
Analyzing Nike‘s Smartkarma Smart Scores, the company shows a promising long-term outlook. With a Value score of 2, indicating a fair valuation of the company’s stock, investors may find Nike to be reasonably priced. In terms of Dividend, Growth, Resilience, and Momentum, Nike scores a 3 across the board, reflecting a stable and growing company that is well-positioned to weather market fluctuations and capitalize on growth opportunities.
In summary, NIKE, Inc. is a global leader in designing, developing, and marketing athletic products. With its well-balanced Smart Scores, Nike appears to have a solid foundation for future success, making it a potentially attractive investment choice for those seeking a combination of value, growth, resilience, and momentum in the 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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