Nike sales were flat in the second quarter of fiscal 2026, at $12.4 billion, the brand said on Thursday. This beat analyst expectations of a slight year-on-year decline, after last quarter saw the sportswear giant’s first period of growth in five consecutive quarters.
“Nike is in the middle innings of our comeback. We are making progress in the areas we prioritized first and remain confident in the actions we’re taking to drive the long-term growth and profitability of our brands,” CEO Elliott Hill said in a statement.
It’s been a year since Hill, who joined the company in September 2024, unveiled Nike’s Win Now strategy that would guide its turnaround plan. The plan centers on increasing innovation, rebuilding Nike’s wholesale distribution, and amping up the brand’s marketing efforts, all while refocusing sport across the brand.
“Fiscal 2026 continues to be a year of taking action through Win Now, including realigning our teams, strengthening partner relationships, rebalancing our portfolio and winning on the ground,” Hill said. “We’re finding our rhythm in our new sport offense, and setting ourselves up for the next phase of athlete-centered innovation in an elevated and integrated marketplace.”
By channel, Nike’s direct-to-consumer (DTC) sales were $4.6 billion, down 9% year-on-year. Wholesale revenues, though, hit $7.5 billion, up 8% year-on-year, reflecting progress in Hill’s commitment to reinvest in the channel. The growth was primarily driven by North America.
The Americas were a bright spot in Q2, up 9% year-on-year to $5.6 billion. “We’re growing increasingly confident that we can maintain that momentum,” Hill said on Thursday of North America’s strong performance. EMEA (Europe, the Middle East and Africa) revenues fell 1% to $3.4 billion, Greater China revenues were down 16% to 1.4 billion, while Asia-Pacific and Latin America revenues fell 4% to $1.7 billion.
Hill acknowledged that Nike needs to reset its position in the Chinese marketplace. “China continues to be one of the most powerful opportunities in sport,” he told investors. Nike is restructuring its China operations to better position the brand for growth. “We will return Nike to a beloved premium and innovative brand in China.”
“In the second quarter, we demonstrated the resilience of our portfolio, delivering modest top-line reported growth while managing headwinds from repositioning our business in a dynamic operating environment,” Matthew Friend, EVP and CFO, added. “We are making the shifts required to position our portfolio for a full recovery and driving real-time decisions in service of the long-term health of our brands.”
Looking forward, Nike expects second-quarter revenues to be down low-single digits, with moderate growth in North America, Friend said on Thursday. This estimate includes higher product costs due to tariffs, he flagged.
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