Nike sales rose 1 per cent in the first quarter of 2026 to $11.7 billion, the company announced on Tuesday, beating expectations and marking the first period of growth in five consecutive quarters. It’s a sign that the turnaround strategy laid out by CEO Elliott Hill — appointed to the role one year ago — is paying off. Shares rose 2 per cent in after-hours trading.
“This quarter, Nike drove progress through our Win Now actions in our priority areas of North America, wholesale and running,” Hill said in a statement. North America sales were up 4 per cent, wholesale rose 7 per cent and Nike Running sales grew 20 per cent in the quarter. Sales rebounds are uneven across category, channel and region, however. Direct sales fell 4 per cent in the quarter, while Greater China sales fell 32 per cent. Gross margin decreased to 42.2 percent, thanks to a lower average selling price due to higher discounts, as well as higher tariffs in North America.
“While we’re getting wins under our belt, we still have work ahead to get all sports, geographies and channels on a similar path as we manage a dynamic operating environment. I’m confident that we have the right focus in Win Now and that our new alignment in the Sport Offense will be the key to maximising Nike Inc’s complete portfolio over the long-term,” said Hill.
Hill unveiled his Win Now strategy last December, outlining key goals of restarting product innovation, rebuilding wholesale and reinvigorating marketing efforts with amped-up, athlete-focused storytelling with sports at the centre. “We’re getting back to a relentless flow of innovation that athletes need,” Hill said on the company’s earnings call on Tuesday. The newly announced Sports Offense initiative sees Nike aligning its Nike, Jordan and Converse brands “into more nimble-focused teams by sport”, according to Hill.
The new brand marries Nike’s athletic performance and Skims’s shapewear sensibilities, with a collection of smoothing leggings and sheer layering pieces as a result. Is it what the athleisure space needs?
Nike has been on a tear, showing up across running, football, tennis and other sports events this year to recoup growth after an extended period of losses. Most recently, it teamed with Kim Kardashian’s brand Skims to launch NikeSkims, a new brand made with both teams that pairs Skims’s shapewear technology with Nike’s sports performance. Hill said that “early response was very strong” and that “NikeSkims has the potential to create performance product with a very different look.”
The company expects the second quarter to be down low single digits. There’s work to be done across Nike’s direct channels, with Nike Digital to be repositioned as a full priced business, according to CFO Matthew Friend, and China still underperforming. The impact of the Trump administration’s reciprocal tariffs introduced in August will also be felt. Friend said that Nike now estimates tariffs’ total cost on annual basis to be $1.5 billion, up from the $1 billion projected impact shared last quarter.
“I remain confident in our ability to leverage our strengths, scale and experience of our leadership team to navigate this,” Friend said.
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