NIKE, Inc.
For the period ended Feb 28, 2026. Filed Apr 1, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Feb 28, 2026 · Filed Apr 1, 2026
NKE$38.59-2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-11-30; filed 2025-12-30.
0000320187-25-000151
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-02-28; filed 2026-04-01.
0000320187-26-000037
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 216 previous paragraphs and 222 current paragraphs.
82 unchanged; 83 reworded; 51 added; 43 removed; 8 previous and 6 current paragraphs rearranged.
Tables are not compared: 18 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (51)
Current report
•NIKE, Inc. Revenues were $11.3 billion for the third quarter of fiscal 2026, flat on a reported basis and down 3% on a currency-neutral basis.
Current report
We have also been evaluating opportunities to operate more efficiently and profitably through realigning costs across our supply chain and technology to serve an integrated marketplace. For the three and nine months ended February 28, 2026, we recognized pre-tax charges of $230 million and $304 million, respectively, primarily associated with employee severance costs. We continue to evaluate opportunities and may take additional actions which could lead to additional charges in future quarters. For more information, refer to Note 13 — Severance and Other Employee Costs within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
Current report
OTHER MATTERS
Current report
On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the U.S. were unauthorized. Total IEEPA tariffs paid as of the date of this report is approximately $1.0 billion. The ruling did not address potential refunds, and therefore the ultimate availability, timing and amount of any potential refunds of these tariffs is highly uncertain. As such, we have determined that potential recovery of any funds is not probable. We will continue to monitor changes to the import and export policies of the U.S. and other countries that could impact our financial position, results of operations and cash flows.
Current report
•NIKE Brand apparel revenues decreased 4% on a currency-neutral basis. Unit sales of apparel decreased 3%, while lower ASP per unit reduced apparel revenues by approximately 1 percentage point. Lower ASP per unit was primarily due to higher discounts, partially offset by product mix and strategic pricing.
Current report
•Higher NIKE Brand ASP (increasing gross margin approximately 80 basis points), primarily due to strategic pricing and product mix;
Current report
Demand creation expense increased 3% due to higher sports marketing expense and unfavorable changes in foreign currency exchange rates, partially offset by lower brand marketing expense, reflecting higher investment in key sports events in the prior year. Changes in foreign currency exchange rates increased Demand creation expense by approximately 2 percentage points.
Current report
Our effective tax rate increased from 5.9% to 20.0%, primarily due to a prior year one-time, non-cash deferred tax benefit provided by U.S. tax regulations related to foreign currency gains and losses.
Current report
•Apparel revenues decreased 2% on a currency-neutral basis. Unit sales of apparel decreased 1%, while lower ASP per unit reduced apparel revenues by approximately 1 percentage point. Lower ASP per unit was primarily due to higher discounts, partially offset by product mix and strategic pricing.
Current report
Reported EBIT decreased 11% reflecting higher reported revenues more than offset by:
Current report
•Gross margin contraction of 350 basis points, primarily due to higher tariffs, partially offset by higher ASP and lower inventory obsolescence reserves. Higher ASP primarily reflects strategic pricing and product mix, partially offset by channel mix.
Current report
•Demand creation expense increased 4% due to higher sports marketing expense, partially offset by lower brand marketing expense.
Current report
•Operating overhead expense decreased 1% due to lower other administrative costs, partially offset by higher wage-related expense.
Current report
•Operating overhead expense increased 3% due to higher wage-related expense, partially offset by lower other administrative costs.
Current report
•EMEA revenues decreased 7% on a currency-neutral basis. Wholesale revenues decreased 4%. NIKE Direct revenues decreased 13% due to declines in digital sales of 6% and declines in store sales of 20%. Comparable store sales decreased 19%.
Current report
•Footwear revenues decreased 7% on a currency-neutral basis. Unit sales of footwear decreased 4%, while lower ASP per pair reduced footwear revenues by approximately 3 percentage points. Lower ASP per pair was primarily due to higher discounts, partially offset by product mix.
Current report
•Apparel revenues decreased 8% on a currency-neutral basis. Unit sales of apparel decreased 8%, while ASP per unit was flat as higher discounts were offset primarily by channel mix.
Current report
Reported EBIT increased 7% reflecting higher reported revenues and the following:
Current report
•Gross margin expansion of 100 basis points, primarily due to higher other product costs in the prior year, partially offset by higher discounts and unfavorable changes in standard foreign currency exchange rates.
Current report
•Operating overhead expense increased 2% due to unfavorable changes in foreign currency exchange rates, partially offset by lower other administrative costs.
Current report
Reported EBIT decreased 6% reflecting higher reported revenues more than offset by:
Current report
•Gross margin contraction of 170 basis points, primarily due to lower ASP, reflecting higher discounts, and unfavorable changes in standard foreign currency exchange rates, partially offset by lower warehousing and logistics costs.
Current report
•Demand creation expense increased 8% due to unfavorable changes in foreign currency exchange rates and higher sports marketing expense, partially offset by lower brand marketing expense, reflecting higher investment in key sports events in the prior year.
Current report
•Greater China revenues decreased 10% on a currency-neutral basis. Wholesale revenues decreased 13%. NIKE Direct revenues decreased 5% due to declines in digital sales of 21%, partially offset by an increase in store sales of 1%. Comparable store sales decreased 1%.
Current report
•Footwear revenues decreased 10% on a currency-neutral basis. Unit sales of footwear decreased 10%, while ASP per pair was flat as lower discounts were offset primarily by product mix and channel mix.
Current report
Reported EBIT increased 11% reflecting lower reported revenues more than offset by:
Current report
•Gross margin expansion of 300 basis points, primarily due to lower inventory obsolescence reserves.
Current report
•Demand creation expense decreased 21%, primarily due to lower brand marketing expense.
Current report
•Footwear revenues decreased 14% on a currency-neutral basis. Unit sales of footwear decreased 13%, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point. Lower ASP per pair was primarily due to channel mix and product mix, partially offset by lower discounts.
Current report
Reported EBIT decreased 20% reflecting lower reported revenues and the following:
Current report
Reported EBIT decreased 4% reflecting higher reported revenues more than offset by:
Current report
•Gross margin contraction of approximately 200 basis points, primarily due to unfavorable changes in standard foreign currency exchange rates.
Current report
•Operating overhead expense was flat as unfavorable changes in foreign currency exchange rates were offset by lower other administrative costs and lower wage-related expense.
Current report
Reported EBIT decreased 11% reflecting lower reported revenues and the following:
Current report
•Operating overhead expense increased 3%, primarily due to higher wage-related expense and unfavorable changes in foreign currency exchange rates.
Current report
•Wholesale revenues decreased 35% on a currency-neutral basis, driven by declines in all territories.
Current report
Reported EBIT decreased 203% reflecting lower reported revenues and the following:
Current report
•Gross margin contraction of approximately 970 basis points, primarily due to the brand and marketplace reset costs, including employee severance costs and higher inventory obsolescence reserves.
Current report
•Demand creation expense decreased 58%, primarily due to lower brand marketing expense.
Current report
•Operating overhead expense increased 11%, primarily due to higher wage-related expense, driven by employee severance costs, partially offset by lower other administrative costs.
Showing the first 40 of 51 passages. Open the source sections for the rest.
Removed paragraphs (43)
Previous report
•NIKE, Inc. Revenues were $12.4 billion for the second quarter of fiscal 2026, up 1% on a reported basis.
Previous report
•Lower warehousing and logistics costs (increasing gross margin approximately 50 basis points), primarily due to channel mix;
Previous report
•Lower warehousing and logistics costs (increasing gross margin approximately 50 basis points), primarily due to channel mix; and
Previous report
Our effective tax rate increased from 18.7% to 20.9%, primarily due to changes in earnings mix and decreased benefits from stock-based compensation.
Previous report
•Footwear revenues increased 9% on a currency-neutral basis. Unit sales of footwear increased 14%, while lower ASP per pair reduced footwear revenues by approximately 5 percentage points. Lower ASP per pair was primarily due to channel mix, partially offset by product mix and strategic pricing.
Previous report
Reported EBIT decreased 8% reflecting higher reported revenues more than offset by:
Previous report
•Gross margin contraction of 330 basis points, primarily due to new tariffs, partially offset by lower warehousing and logistics costs due to channel mix, and lower inventory obsolescence reserves. ASP was flat as product mix and strategic pricing were offset primarily by channel mix.
Previous report
•Demand creation expense increased 24% due to higher brand marketing expense and higher sports marketing expense.
Previous report
•Operating overhead expense increased 6% due to higher other administrative costs and higher wage-related expense.
Previous report
•Footwear revenues increased 5% on a currency-neutral basis. Unit sales of footwear increased 10%, while lower ASP per pair reduced footwear revenues by approximately 5 percentage points. Lower ASP per pair was primarily due to channel mix and higher discounts, partially offset by strategic pricing.
Previous report
•Apparel revenues increased 9% on a currency-neutral basis. Unit sales of apparel increased 9%, while ASP per unit was flat as product mix and lower discounts were primarily offset by channel mix.
Previous report
•Demand creation expense increased 10% due to higher brand marketing expense and higher sports marketing expense.
Previous report
•Operating overhead expense increased 5% due to higher wage-related expense and higher other administrative costs.
Previous report
•Apparel revenues increased 1% on a currency-neutral basis. Unit sales of apparel increased 7%, while lower ASP per unit reduced apparel revenues by approximately 6 percentage points. Lower ASP per unit was primarily due to higher discounts and product mix.
Previous report
Reported EBIT decreased 12% reflecting higher reported revenues more than offset by:
Previous report
•Gross margin contraction of 270 basis points, primarily due to lower ASP, reflecting higher discounts and higher product costs, partially offset by lower warehousing and logistics costs and lower inventory obsolescence reserves.
Previous report
•Demand creation expense increased 7% primarily due to higher brand marketing expense and unfavorable changes in foreign currency exchange rates.
Previous report
•Operating overhead expense increased 7% primarily due to unfavorable changes in foreign currency exchange rates.
Previous report
•EMEA revenues were flat on a currency-neutral basis. Wholesale revenues increased 2%. NIKE Direct revenues decreased 4% due to declines in digital sales of 7% and declines in store sales of 2%. Comparable store sales increased 1%.
Previous report
•Footwear revenues decreased 2% on a currency-neutral basis. Unit sales of footwear increased 2%, while lower ASP per pair reduced footwear revenues by approximately 4 percentage points. Lower ASP per pair was primarily due to higher discounts, partially offset by product mix.
Previous report
•Apparel revenues increased 3% on a currency-neutral basis. Unit sales of apparel increased 8%, while lower ASP per unit reduced apparel revenues by approximately 5 percentage points. Lower ASP per unit was primarily due to higher discounts.
Previous report
Reported EBIT decreased 10% reflecting higher reported revenues more than offset by:
Previous report
•Gross margin contraction of 290 basis points, primarily due to lower ASP, reflecting higher discounts and higher product costs, partially offset by lower warehousing and logistics costs and lower inventory obsolescence reserves.
Previous report
•Operating overhead expense increased 6% primarily due to unfavorable changes in foreign currency exchange rates.
Previous report
•Greater China revenues decreased 16% on a currency-neutral basis. Wholesale revenues decreased 15%. NIKE Direct revenues decreased 18% due to declines in digital sales of 36% and declines in store sales of 5%. Comparable store sales decreased 7%.
Previous report
Reported EBIT decreased 49% reflecting lower reported revenues and the following:
Previous report
•Demand creation expense increased 7%, primarily due to higher brand marketing expense.
Previous report
•Operating overhead expense was flat as higher wage-related expense was offset by lower other administrative costs.
Previous report
•Footwear revenues decreased 16% on a currency-neutral basis. Unit sales of footwear decreased 15%, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point. Lower ASP per pair was primarily due to channel mix.
Previous report
Reported EBIT decreased 35% reflecting lower reported revenues and the following:
Previous report
•Gross margin contraction of 200 basis points, primarily due to higher inventory obsolescence reserves and higher product costs, driven by product mix.
Previous report
Reported EBIT decreased 15% reflecting lower reported revenues and the following:
Previous report
•Gross margin contraction of approximately 180 basis points, primarily due to higher product costs and unfavorable changes in standard foreign currency exchange rates.
Previous report
Reported EBIT decreased 14% reflecting lower reported revenues and the following:
Previous report
•Wholesale revenues decreased 34% on a currency-neutral basis, driven by declines in all territories.
Previous report
Reported EBIT decreased 108% reflecting lower reported revenues and the following:
Previous report
•Gross margin contraction of approximately 700 basis points, primarily due to lower ASP, reflecting higher discounts and higher product costs.
Previous report
•Demand creation expense decreased 44%, primarily due to lower brand marketing expense.
Previous report
Reported EBIT decreased 80% reflecting lower reported revenues and the following:
Previous report
•Gross margin contraction of approximately 650 basis points, primarily due to lower ASP, reflecting higher discounts and higher product costs.
Showing the first 40 of 43 passages. Open the source sections for the rest.
Reworded paragraphs (83)
Previous wording
•NIKE Brand wholesale revenues were $7.5 billion for the second quarter of fiscal 2026 compared to $6.9 billion for the second quarter of fiscal 2025, primarily driven by an increase in North America, partially offset by declines in Greater China and Asia Pacific & Latin America ("APLA").
Current wording
•NIKE Brand wholesale revenues were $6.5 billion for the third quarter of fiscal 2026 compared to $6.2 billion for the third quarter of fiscal 2025. The increase on a currency-neutral basis was driven by higher revenues in North America and Asia Pacific & Latin America ("APLA"), partially offset by lower revenues in Greater China and Europe, Middle East & Africa ("EMEA").
Previous wording
•NIKE Direct revenues were $4.6 billion for the second quarter of fiscal 2026 compared to $5.0 billion for the second quarter of fiscal 2025, primarily driven by a decrease in traffic in NIKE Brand Digital.
Current wording
•NIKE Direct revenues were $4.5 billion for the third quarter of fiscal 2026 compared to $4.7 billion for the third quarter of fiscal 2025, primarily driven by a decrease in traffic.
Previous wording
•Gross margin for the second quarter of fiscal 2026 decreased 300 basis points to 40.6% primarily due to higher tariffs in North America.
Current wording
•Gross margin for the third quarter of fiscal 2026 decreased 130 basis points to 40.2% primarily due to higher tariffs in North America.
Previous wording
•Inventories as of November 30, 2025, were $7.7 billion, an increase of 3% compared to May 31, 2025, driven by increased product costs including higher tariffs in North America.
Current wording
•Inventories as of February 28, 2026, were $7.5 billion, flat compared to May 31, 2025, primarily reflecting an increase in units, offset by product mix.
Previous wording
•We returned approximately $598 million to our shareholders in the second quarter of fiscal 2026 through dividends.
Current wording
•We returned approximately $609 million to our shareholders in the third quarter of fiscal 2026 through dividends.
Previous wording
We are navigating through several external factors that create uncertainty and volatility in the operating environment, including, but not limited to, geopolitical dynamics, tax regulation, fluctuating foreign currency exchange rates and evolving tariff policies. As a result of new tariffs, we expect a gross incremental cost of approximately $1.5 billion on an annualized basis. We are taking actions to mitigate the impact of new tariffs; however for fiscal 2026, we expect a negative impact on gross margin. We will continue to monitor changes to the import and export policies of the U.S. and other countries that could require us to change the way in which we do business. These factors, and any changes to these factors, among others, could have a material adverse impact on consumer behavior and on our future Revenues and overall profitability. For a discussion of these factors and other risks, refer to Risk Factors in Item 1A of Part 1 within our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 (the "Annual Report").
Current wording
We are navigating through several external factors that create uncertainty and volatility in the operating environment, including, but not limited to, geopolitical dynamics, tax regulation, fluctuating foreign currency exchange rates and evolving tariff policies. These factors, and any changes to these factors, among others, could have a material adverse impact on consumer behavior and on our future Revenues and overall profitability. For a discussion of these factors and other risks, refer to Risk Factors in Item 1A of Part 1 within our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 (the "Annual Report").
Previous wording
Our reportable operating segments are at different stages of progress against these actions and therefore, the timing of financial impacts have varied and we expect will continue to vary by segment. These actions have had, and in the future will have, a negative impact on our Revenues and overall profitability. North America has made the most progress against these actions, while Greater China and Converse will take more time. In Greater China, a trend of declining store traffic, elevated promotional activity and higher levels of inventory across the marketplace are negatively impacting revenues and overall profitability, while Converse is in the midst of a strategic reset of the brand and marketplace. We expect negative impacts from Greater China and Converse to continue throughout fiscal 2026. However, we believe these product, marketplace and brand management actions taken across our portfolio will reignite brand momentum and reposition our business to drive long-term shareholder value.
Current wording
Our reportable operating segments are at different stages of progress and we expect to complete these actions by the end of December 2026. The timing of financial impacts has and will continue to vary by segment. North America has made the most progress against these actions, while Greater China and Converse will take more time. In Greater China, a trend of declining store traffic, elevated promotional activity and higher levels of inventory across the marketplace are negatively impacting revenues and overall profitability, while Converse is in the midst of a strategic reset of the brand and marketplace. We expect negative impacts from Greater China to continue throughout fiscal 2027. While these product, marketplace and brand management actions taken across our portfolio have had, and in the future may have, a negative impact on our Revenues and overall profitability, we believe they will reignite brand momentum and reposition our business to drive long-term shareholder value.
Previous wording
Earnings Before Interest and Taxes ("EBIT"): Calculated as Net income before Interest (income) expense, net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income. Total NIKE, Inc. EBIT for the three and six months ended November 30, 2025 and November 30, 2024 are as follows:
Current wording
Earnings Before Interest and Taxes ("EBIT") and EBIT margin: Calculated as Net income before Interest (income) expense, net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income and total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues, respectively. Total NIKE, Inc. EBIT and our EBIT margin calculations for the three and nine months ended February 28, 2026 and February 28, 2025 are as follows:
Previous wording
•NIKE, Inc. Revenues for the second quarter of fiscal 2026 were $12.4 billion, up 1% on a reported basis. On a currency-neutral basis, NIKE, Inc. Revenues were flat, primarily due to higher revenues in North America, which increased NIKE, Inc. Revenues by approximately 4 percentage points. Lower revenues in Greater China, Converse and APLA reduced NIKE, Inc. Revenues by approximately 2, 1 and 1 percentage points, respectively.
Current wording
•NIKE, Inc. Revenues for the third quarter of fiscal 2026 were $11.3 billion, flat on a reported basis. On a currency-neutral basis, NIKE, Inc. Revenues decreased 3%, primarily due to lower revenues in EMEA, Greater China and Converse, which reduced NIKE, Inc. Revenues by approximately 2, 1, and 1 percentage points, respectively. Higher revenues in North America increased NIKE, Inc. Revenues by approximately 1 percentage point.
Previous wording
•NIKE Brand revenues increased 2% on a reported basis and 1% on a currency-neutral basis.
Current wording
•NIKE Brand revenues increased 1% on a reported basis and decreased 2% on a currency-neutral basis.
Previous wording
•NIKE Brand footwear revenues decreased 2% on a currency-neutral basis. Unit sales of footwear increased 1%, while lower ASP per pair reduced footwear revenues by approximately 3 percentage points. Lower ASP per pair was primarily due to channel mix and higher discounts, partially offset by product mix and strategic pricing.
Current wording
•NIKE Brand footwear revenues decreased 1% on a currency-neutral basis. Unit sales of footwear decreased 2%, while higher average selling price ("ASP") per pair contributed approximately 1 percentage point of footwear revenue growth. Higher ASP per pair was primarily due to product mix and strategic pricing, partially offset by channel mix.
Previous wording
•NIKE Brand wholesale revenues increased 8% on a reported basis and 6% on a currency-neutral basis. The increase on a currency-neutral basis was driven by higher revenues in North America and Europe, Middle East & Africa ("EMEA") and APLA, partially offset by lower revenues in Greater China.
Current wording
•NIKE Brand wholesale revenues were $6.5 billion for the third quarter of fiscal 2026, up 5% on a reported basis and up 1% on a currency-neutral basis. The increase on a currency-neutral basis was driven by higher revenues in North America and APLA, partially offset by lower revenues in Greater China and EMEA.
Previous wording
•NIKE Direct revenues were $4.6 billion for the second quarter of fiscal 2026, down 8% on a reported basis and down 9% on a currency-neutral basis, due to declines in NIKE Brand Digital sales of 14% and declines in NIKE stores sales of 3%. NIKE Brand Digital sales were $2.4 billion for the second quarter of fiscal 2026 compared to $2.8 billion for the second quarter of fiscal 2025, with declines primarily due to reduced traffic. Comparable store sales decreased 3%. For additional information regarding comparable store sales, including the definition, see "Comparable Store Sales".
Current wording
•NIKE Direct revenues were $4.5 billion for the third quarter of fiscal 2026, down 4% on a reported basis and down 7% on a currency-neutral basis, due to declines in NIKE Brand Digital sales of 9% and declines in NIKE store sales of 5%. NIKE Brand Digital sales were $2.3 billion for the third quarter of fiscal 2026 compared to $2.5 billion for the third quarter of fiscal 2025, with declines primarily due to reduced traffic. Comparable store sales decreased 5%. For additional information regarding comparable store sales, including the definition, see "Comparable Store Sales".
Previous wording
•NIKE, Inc. Revenues for the first six months of fiscal 2026 were $24.1 billion, up 1% on a reported basis. On a currency-neutral basis, NIKE, Inc. Revenues decreased 1%, primarily due to lower revenues in Greater China, Converse and APLA, which reduced NIKE, Inc. Revenues by approximately 2, 1 and 1 percentage points, respectively. Higher revenues in North America increased NIKE, Inc. Revenues by approximately 3 percentage points.
Current wording
•NIKE, Inc. Revenues for the first nine months of fiscal 2026 were $35.4 billion, up 1% on a reported basis. On a currency-neutral basis, NIKE, Inc. Revenues decreased 1%, primarily due to lower revenues in Greater China and Converse, which reduced NIKE, Inc. Revenues by approximately 2 and 1 percentage points, respectively. Higher revenues in North America increased NIKE, Inc. Revenues by approximately 2 percentage points.
Previous wording
•NIKE Brand revenues increased 1% on both a reported and currency-neutral basis.
Current wording
•NIKE Brand revenues increased 2% on a reported basis and were flat on a currency-neutral basis.
Previous wording
•NIKE Brand footwear revenues decreased 1% on a currency-neutral basis. Unit sales of footwear were flat, while lower average selling price ("ASP") per pair reduced footwear revenues by approximately 1 percentage point. Lower ASP per pair was primarily due to channel mix and higher discounts, partially offset by product mix and strategic pricing.
Current wording
•NIKE Brand footwear revenues decreased 1% on a currency-neutral basis. Unit sales of footwear were flat, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point. Lower ASP per pair was primarily due to channel mix and higher discounts, partially offset by product mix and strategic pricing.
Previous wording
•NIKE Brand apparel revenues increased 5% on a currency-neutral basis. Unit sales of apparel increased 7%, while lower ASP per unit reduced apparel revenues by approximately 2 percentage points. Lower ASP per unit was primarily due to higher discounts and channel mix, partially offset by product mix.
Current wording
•NIKE Brand apparel revenues increased 2% on a currency-neutral basis. Unit sales of apparel increased 3%, while lower ASP per unit reduced apparel revenues by approximately 1 percentage point. Lower ASP per unit was primarily due to higher discounts and channel mix, partially offset by product mix.
Previous wording
•NIKE Brand wholesale revenues increased 8% on both a reported and currency-neutral basis. The increase on a currency-neutral basis was driven by higher revenues in North America, partially offset by lower revenues in Greater China and APLA.
Current wording
•NIKE Brand wholesale revenues were $20.8 billion for the first nine months of fiscal 2026, up 7% on a reported basis and up 5% on a currency-neutral basis. The increase on a currency-neutral basis was driven by higher revenues in North America and APLA, partially offset by lower revenues in Greater China.
Previous wording
•NIKE Direct revenues were $9.1 billion for the first six months of fiscal 2026, down 6% on a reported basis and down 7% on a currency-neutral basis, due to declines in NIKE Brand Digital sales of 13% and declines in NIKE stores sales of 2%. NIKE Brand Digital sales were $4.5 billion in the second quarter of fiscal 2026 compared to $5.1 billion in the second quarter of fiscal 2025, with declines primarily due to reduced traffic. Comparable store sales decreased 2%.
Current wording
•NIKE Direct revenues were $13.7 billion for the first nine months of fiscal 2026, down 5% on a reported basis and down 7% on a currency-neutral basis, due to declines in NIKE Brand Digital sales of 12% and declines in NIKE store sales of 3%. NIKE Brand Digital sales were $6.8 billion for the first nine months of fiscal 2026 compared to $7.6 billion for the first nine months of fiscal 2025, with declines primarily due to reduced traffic. Comparable store sales decreased 3%.
Previous wording
Consolidated gross margin was 300 basis points lower than the prior year primarily due to:
Current wording
Consolidated gross margin was 130 basis points lower than the prior year due to:
Previous wording
•Higher NIKE Brand product costs (decreasing gross margin approximately 230 basis points), primarily due to higher tariffs in North America;
Current wording
•Higher NIKE Brand product costs (decreasing gross margin approximately 270 basis points), primarily due to higher tariffs in North America; and
Previous wording
•Lower other costs (increasing gross margin approximately 40 points), primarily due to lower inventory obsolescence reserves.
Current wording
•Lower other costs (increasing gross margin approximately 60 basis points), primarily due to lower inventory obsolescence reserves;
Previous wording
•Favorable changes in net foreign currency exchange rates, including hedges (increasing gross margin approximately 40 basis points); and
Current wording
•Favorable changes in net foreign currency exchange rates, including hedges (increasing gross margin approximately 10 basis points).
Previous wording
Consolidated gross margin was 310 basis points lower than the prior year primarily due to:
Current wording
Consolidated gross margin was 250 basis points lower than the prior year due to:
Previous wording
•Higher NIKE Brand product costs (decreasing gross margin approximately 360 basis points), primarily due to higher tariffs in North America;
Current wording
•Higher NIKE Brand product costs (decreasing gross margin approximately 240 basis points), primarily due to higher tariffs in North America;
Previous wording
•Lower NIKE Brand ASP (decreasing gross margin approximately 50 basis points), primarily due to channel mix and higher discounts, partially offset by strategic pricing; and
Current wording
•Lower NIKE Brand ASP (decreasing gross margin approximately 80 basis points), primarily due to channel mix and higher discounts, partially offset by strategic pricing; and
Previous wording
•Lower gross margin from Converse (decreasing gross margin approximately 20 basis points).
Current wording
•Lower gross margin from Converse (decreasing gross margin approximately 30 basis points).
Previous wording
•Favorable changes in net foreign currency exchange rates, including hedges (increasing gross margin approximately 30 basis points).
Current wording
•Favorable changes in net foreign currency exchange rates, including hedges (increasing gross margin approximately 30 basis points); and
Previous wording
Demand creation expense increased 13% due to higher brand marketing expense and higher sports marketing expense. Changes in foreign currency exchange rates increased Demand creation expense by approximately 1 percentage point.
Current wording
Demand creation expense was flat as higher sports marketing expense and unfavorable changes in foreign currency exchange rates were offset by lower brand marketing expense. Changes in foreign currency exchange rates increased Demand creation expense by approximately 3 percentage points.
Previous wording
Operating overhead expense decreased 2% due to lower other administrative costs, partially offset by higher wage-related expense. Changes in foreign currency exchange rates increased Operating overhead expense by approximately 1 percentage point.
Current wording
Operating overhead expense increased 3% due to higher wage-related expense, driven by employee severance costs, and unfavorable changes in foreign currency exchange rates, partially offset by lower other administrative costs. Changes in foreign currency exchange rates increased Operating overhead expense by approximately 2 percentage points.
Previous wording
Operating overhead expense decreased 4% due to lower wage-related expense and lower other administrative costs. Changes in foreign currency exchange rates increased Operating overhead expense by approximately 1 percentage point.
Current wording
Operating overhead expense was flat as lower other administrative costs were offset by higher wage-related expense, driven by employee severance costs, and unfavorable changes in foreign currency exchange rates. Changes in foreign currency exchange rates increased Operating overhead expense by approximately 1 percentage point.
Previous wording
Other (income) expense, net decreased from $63 million of other income, net, to $39 million of other expense, net, primarily due to an unfavorable net change in foreign currency conversion gains and losses, including hedges.
Current wording
Other (income) expense, net increased from $38 million of other income, net, to $82 million of other income, net, primarily due to settlements of legal matters, partially offset by an unfavorable net change in foreign currency conversion gains and losses, including hedges.
Previous wording
Other (income) expense, net decreased from $8 million of other income, net, to $16 million of other expense, net, primarily due to an unfavorable net change in foreign currency conversion gains and losses, including hedges.
Current wording
Other (income) expense, net decreased from $101 million of other income, net, to $43 million of other income, net, primarily due to an unfavorable net change in foreign currency conversion gains and losses, including hedges, partially offset by settlements of legal matters.
Previous wording
Our effective tax rate increased from 17.9% to 20.7%, primarily due to changes in earnings mix.
Current wording
Our effective tax rate increased from 15.7% to 20.7%, primarily due to a prior year one-time, non-cash deferred tax benefit provided by U.S. tax regulations related to foreign currency gains and losses.
Previous wording
•North America revenues increased 7% on a currency-neutral basis. Wholesale revenues increased 18%, primarily driven by the impacts of our marketplace management actions and expanded distribution in the current year. NIKE Direct revenues decreased 6% due to declines in digital sales of 13% and declines in store sales of 1%. Comparable store sales decreased 1%.
Current wording
•North America revenues increased 3% on a currency-neutral basis. Wholesale revenues increased 11%, primarily driven by the impacts of our marketplace management actions in both the current and prior year and expanded distribution in the current year. NIKE Direct revenues decreased 5% due to declines in digital sales of 7% and declines in store sales of 1%. Comparable store sales decreased 1%.
Previous wording
•Apparel revenues increased 6% on a currency-neutral basis. Unit sales of apparel increased 7%, while lower ASP per unit reduced apparel revenues by approximately 1 percentage point. Lower ASP per unit was primarily due to higher discounts and channel mix, partially offset by product mix and strategic pricing.
Current wording
•Footwear revenues increased 6% on a currency-neutral basis. Unit sales of footwear increased 4%, while higher ASP per pair contributed approximately 2 percentage points of footwear revenue growth. Higher ASP per pair was primarily due to product mix and strategic pricing, partially offset by channel mix.
Previous wording
•North America revenues increased 9% on a currency-neutral basis. Wholesale revenues increased 24%, primarily driven by the impacts of our marketplace management actions in both the current and prior year, expanded distribution in the current year, as well as shipment growth to existing partners. NIKE Direct revenues decreased 10% due to declines in digital sales of 16% and declines in store sales of 2%. Comparable store sales decreased 1%.
Current wording
•North America revenues increased 5% on a currency-neutral basis. Wholesale revenues increased 15%, primarily driven by expanded distribution in the current year and the impacts of our marketplace management actions in both the current and prior year. NIKE Direct revenues decreased 6% due to declines in digital sales of 11% and declines in store sales of 1%. Comparable store sales decreased 1%.
Previous wording
•Apparel revenues increased 6% on a currency-neutral basis. Unit sales of apparel increased 8%, while lower ASP per unit reduced apparel revenues by approximately 2 percentage points. Lower ASP per unit was primarily due to higher discounts and channel mix, partially offset by product mix and strategic pricing.
Current wording
•Footwear revenues increased 5% on a currency-neutral basis. Unit sales of footwear increased 8%, while lower ASP per pair reduced footwear revenues by approximately 3 percentage points. Lower ASP per pair was primarily due to channel mix, partially offset by product mix and strategic pricing.
Previous wording
•Footwear revenues decreased 20% on a currency-neutral basis. Unit sales of footwear decreased 20%, while ASP per pair was flat as channel mix was offset by lower discounts.
Current wording
•Apparel revenues increased 5% on a currency-neutral basis. Unit sales of apparel increased 5%, while ASP per unit was flat as channel mix and higher discounts were offset primarily by product mix.
Previous wording
Reported EBIT decreased 7% reflecting higher reported revenues more than offset by the following:
Current wording
Reported EBIT decreased 9% reflecting higher reported revenues more than offset by the following:
Showing the first 40 of 83 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
•Lower warehousing and logistics costs (increasing gross margin approximately 20 basis points); and
Current report — wording carried from elsewhere
•Lower warehousing and logistics costs (increasing gross margin approximately 40 basis points), primarily due to channel mix;
Current report — wording carried from elsewhere
•Lower other costs (increasing gross margin approximately 30 basis points), primarily due to lower inventory obsolescence reserves.
Current report — wording carried from elsewhere
•Operating overhead expense was flat as lower other administrative costs were offset primarily by unfavorable changes in foreign currency exchange rates.
Current report — wording carried from elsewhere
•Operating overhead expense was flat as lower other administrative costs were offset by higher wage-related expense and unfavorable changes in foreign currency exchange rates.
Current report — wording carried from elsewhere
•Apparel revenues increased 5% on a currency-neutral basis. Unit sales of apparel increased 7%, while lower ASP per unit reduced apparel revenues by approximately 2 percentage points. Lower ASP per unit was primarily due to higher discounts and channel mix, partially offset by product mix and strategic pricing.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
EBIT margin: Calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. Our EBIT margin calculations for the three and six months ended November 30, 2025 and November 30, 2024 are as follows:
Previous report — wording carried elsewhere
•Lower NIKE Brand ASP (decreasing gross margin approximately 150 basis points), primarily due to channel mix and higher discounts, partially offset by strategic pricing; and
Previous report — wording carried elsewhere
•Demand creation expense decreased 2%, primarily due to lower brand marketing expense, reflecting higher investment in key sports events in the prior year.
Previous report — wording carried elsewhere
•Operating overhead expense was flat as lower other administrative costs were offset by higher wage-related expense.
Previous report — wording carried elsewhere
•Operating overhead expense decreased 1%, primarily due to lower other administrative costs, partially offset by higher wage-related expense.
Previous report — wording carried elsewhere
•Demand creation expense increased 10%, primarily due to higher sports marketing expense and higher brand marketing expense.
Previous report — wording carried elsewhere
•Wholesale revenues decreased 32% on a currency-neutral basis, driven by declines in all territories.
Previous report — wording carried elsewhere
Refer to Note 11 — Commitments and Contingencies in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for additional information related to our bank guarantees and letters of credit.