NIKE, Inc. Reports Fiscal 2027 First Quarter Results

BEAVERTON, Ore.--( BUSINESS WIRE)--NIKE, Inc. (NYSE:NKE) today reported fiscal 2027 financial results for its first quarter ended August 31, 2026.

Executive Commentary

"The Sport Offense is driving measurable progress across our performance business, and we introduced Pace to help us accelerate and scale that momentum across NIKE," said Elliott Hill, President and Chief Executive Officer, NIKE, Inc. "We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we're taking deliberate actions to strengthen those businesses the right way for the long-term."

"We delivered first quarter results consistent with our expectations, supported by improved gross margin and disciplined cost management," said Dave Denton, Executive Vice President and Chief Financial Officer, NIKE, Inc. "As we move forward, we remain focused on strengthening the health of our product portfolio, improving productivity across the enterprise and allocating resources with discipline to support long-term shareholder value."

Overall Results

First Quarter Income Statement Review

August 31, 2026 Balance Sheet Review

Shareholder Returns

NIKE has a strong track record of returns to shareholders. In the first quarter, the Company returned approximately $610 million to shareholders through dividends, up 3 percent from the prior year.

Recent Developments

Pace is an operating model transformation to accelerate and scale the success of the Sport Offense. The program includes and builds upon the previous cost realignment plan announced in March 2026. Pace includes efforts to modernize NIKE's global supply chain, the establishment of a new campus in India to fuel its enterprise capabilities, a realignment to three geographies, and further streamlining of the organization to reduce costs.

NIKE expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion of pre-tax charges, primarily consisting of employee-related costs, through fiscal 2031, in addition to approximately $0.3 billion of severance costs recognized in fiscal 2026. NIKE expects approximately $0.3 billion to be recognized in fiscal 2027.

The savings estimate is stated before the expected pre-tax charges described above and any future reinvestment. The expected savings, pre-tax charges and future cash expenditures are estimates and are subject to a number of assumptions, including local law requirements in various jurisdictions. Actual savings, charges and cash expenditures may differ, possibly materially, from these estimates.

Outlook

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on October 1, 2026, to review fiscal first quarter results. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through approximately 9:00 p.m. PT, October 29, 2026.

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.'s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.

Forward-Looking Statements

This press release contains forward-looking statements regarding our expectations of our future results and our strategy, including our fiscal 2027 outlook and the program, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the risk that NIKE is not able to realize anticipated cost savings in the amounts or within the timeframes expected, or at all, risks related to the preliminary nature of the estimates of the charges to be incurred and future cash expenditures to be made in connection with the program and the possibility that those estimates may change in amount or timing as NIKE refines the estimates over time, risks related to any delays in the timing for implementing the program, including as a result of local law requirements, or potential disruptions to NIKE's business, operations or workforce as it executes on the program, and other factors that may cause NIKE to be unable to achieve the expected benefits of the program, as well as the risks and uncertainties detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.

Non-GAAP financial measure. See additional information in the accompanying Divisional Revenues and Channel Revenues tables.

Adjusted Diluted earnings per share is Diluted earnings per share excluding restructuring and severance charges, which is a non-GAAP financial measure. The most comparable GAAP measure is Diluted earnings per share. The Company uses Adjusted Diluted earnings per share to facilitate the evaluation of the Company's performance. The Company believes that providing Adjusted Diluted earnings per share is useful to investors for comparability between periods and allows investors to evaluate the impacts of restructuring and severance charges separately. This measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

NIKE, Inc.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

THREE MONTHS ENDED

(In millions, except per share data)

8/31/2026

8/31/2025

Change

Revenues

11,213

11,720

-4%

Cost of sales

6,415

6,777

-5%

Gross profit

4,798

4,943

-3%

Gross margin

42.8

42.2

60 bps

Demand creation expense

1,252

1,188

Operating overhead expense

2,658

2,828

-6%

Total selling and administrative expense

3,910

4,016

-3%

% of revenues

34.9

34.3

60 bps

Interest (income) expense, net

(14

)

(18

)

—

Other (income) expense, net

(19

)

—

Income before income taxes

921

922

Income tax expense

209

195

Effective tax rate

22.7

21.1

160 bps

NET INCOME

712

727

-2%

Earnings per common share:

Basic

0.48

0.49

Diluted

0.48

0.49

Weighted average common shares outstanding:

Basic

1,483.6

1,476.6

Diluted

1,484.2

1,479.0

Dividends declared per common share

0.410

0.400

NIKE, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in millions)

8/31/2026

8/31/2025

% Change

ASSETS

Current assets:

Cash and equivalents

6,903

7,024

-2

Short-term investments

1,465

1,551

-6

Accounts receivable, net

5,242

4,962

Inventories

7,846

8,114

-3

Prepaid expenses and other current assets

2,217

2,247

-1

Total current assets

23,673

23,898

-1

Property, plant and equipment, net

4,887

4,861

Operating lease right-of-use assets, net

2,947

2,727

Identifiable intangible assets, net

259

Goodwill

240

Deferred income taxes and other assets

5,788

5,349

TOTAL ASSETS

37,794

37,334

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

2,000

—

100

Accounts payable

3,420

3,772

-9

Current portion of operating lease liabilities

473

506

-7

Accrued liabilities

5,338

5,927

-10

Income taxes payable

178

706

-75

Total current liabilities

11,409

10,911

Long-term debt

5,893

7,996

-26

Operating lease liabilities

2,706

2,555

Deferred income taxes and other liabilities

2,566

2,404

Redeemable preferred stock

—

Shareholders' equity

15,220

13,468

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

37,794

37,334

NIKE, Inc.

DIVISIONAL REVENUES

(Unaudited)

% Change Excluding Currency Changes 1

THREE MONTHS ENDED

(Dollars in millions)

8/31/2026

8/31/2025

Change

North America

Footwear

3,259

3,219

Apparel

1,566

1,474

Equipment

302

327

-8

Total

5,127

5,020

Europe, Middle East & Africa

Footwear

1,798

2,021

-11

Apparel

1,163

1,106

Equipment

215

204

Total

3,176

3,331

-5

Greater China

Footwear

866

1,109

-22

-26

Apparel

279

362

-23

-27

Equipment

-15

-18

Total

1,180

1,512

-22

-26

Asia Pacific & Latin America

Footwear

1,028

1,061

-3

-1

Apparel

376

371

Equipment

Total

1,463

1,490

-2

Global Brand Divisions 2

—

TOTAL NIKE BRAND

10,952

11,362

-4

Converse

263

366

-28

Corporate 3

)

—

TOTAL NIKE, INC. REVENUES

11,213

11,720

-4

-5

NIKE Brand Revenues by:

Footwear

6,951

7,410

-6

Apparel

3,384

3,313

Equipment

611

630

-3

Global Brand Divisions 2

—

TOTAL NIKE BRAND REVENUES

10,952

11,362

-4

1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

3 Corporate revenues primarily consist of foreign currency gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program.

NIKE, Inc.

CHANNEL REVENUES

(Unaudited)

% Change Excluding Currency Changes 1

THREE MONTHS ENDED

(Dollars in millions)

8/31/2026

8/31/2025

Change

North America

Sales to Wholesale Customers

2,981

2,736

Sales through NIKE Direct

2,146

2,284

-6

Total

5,127

5,020

Europe, Middle East & Africa

Sales to Wholesale Customers

2,233

2,261

-1

Sales through NIKE Direct

943

1,070

-12

Total

3,176

3,331

-5

Greater China

Sales to Wholesale Customers

644

893

-28

-31

Sales through NIKE Direct

536

619

-13

-18

Total

1,180

1,512

-22

-26

Asia Pacific & Latin America

Sales to Wholesale Customers

946

949

Sales through NIKE Direct

517

541

-4

-3

Total

1,463

1,490

-2

Global Brand Divisions 2

—

TOTAL NIKE BRAND

10,952

11,362

-4

Converse

263

366

-28

Corporate 3

)

—

TOTAL NIKE, INC. REVENUES

11,213

11,720

-4

-5

NIKE Brand Revenues by:

Sales to Wholesale Customers

6,804

6,839

-1

Sales through NIKE Direct

4,142

4,514

-8

-9

Global Brand Divisions 2

—

TOTAL NIKE BRAND REVENUES

10,952

11,362

-4

2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

NIKE, Inc.

EARNINGS BEFORE INTEREST AND TAXES ("EBIT") 1

(Unaudited)

THREE MONTHS ENDED

(Dollars in millions)

8/31/2026

8/31/2025

Change

North America

1,170

1,134

Europe, Middle East & Africa

728

735

-1

Greater China

248

377

-34

Asia Pacific & Latin America

324

350

-7

Global Brand Divisions 2

(1,110

)

(1,192

)

TOTAL NIKE BRAND EBIT 1

1,360

1,404

-3

Converse

-36

Corporate 3

(478

)

(539

)

TOTAL NIKE, INC. EBIT 1

907

904

Interest (income) expense, net

(14

)

(18

)

—

Income tax expense

209

195

NET INCOME

712

727

-2

Total NIKE, Inc. Revenues

11,213

11,720

-4

Net income margin

6.3

6.2

EBIT margin 1

8.1

7.7

1 Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures. EBIT is calculated as Net income before Interest (income) expense, net and Income tax expense. EBIT margin is calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. Management uses these non-GAAP financial measures when evaluating the Company's performance, including segment performance, when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends.

2 Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

3 Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's corporate headquarters; unallocated insurance; benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses.