Nike reported largely flat revenues for the second quarter of fiscal 2026, as a recovery in wholesale helped offset continued weakness in its direct-to-consumer business, underscoring the sportswear group’s ongoing strategic reset.
The company posted revenues of US $ 12.4 billion for the quarter ended 30 November 2025, up 1% year on year. Wholesale revenues rose 8% to US $ 7.5 billion, while Nike Direct sales fell 8% to US $ 4.6 billion, reflecting declines across both digital channels and Nike-owned stores.
Profitability came under pressure during the period. Gross margin fell 300 basis points to 40.6%, primarily due to higher tariffs in North America. Net income declined 32% to US $ 800 million, while diluted earnings per share fell by the same margin to US $ 0.53.
Elliott Hill, president and chief executive of Nike, said the company was in what he described as the “middle innings” of its turnaround. He said progress had been made in the areas prioritised earlier in the recovery plan and added that management remained confident in the steps being taken to drive long-term growth and profitability.
Hill said fiscal 2026 continued to be a year focused on execution under the company’s “Win Now” strategy, including realigning teams, strengthening partner relationships, rebalancing the product portfolio and improving performance at the ground level. He added that Nike was beginning to find momentum in its renewed sports-focused strategy while laying the foundations for the next phase of athlete-centred innovation.
The quarterly performance highlighted a shift in Nike’s distribution mix. After several years of prioritising direct-to-consumer channels, wholesale once again delivered growth, particularly in North America. By contrast, Nike Direct was weighed down by a 14% decline in Nike Brand Digital sales and a 3% fall in revenues from Nike-owned stores.
Nike Brand revenues rose 1% to US $ 12.1 billion, supported by growth in North America, although this was partly offset by declines in Greater China and across Asia Pacific and Latin America. Converse continued to underperform, with revenues falling 30% to US $ 300 million.
Chief financial officer Matthew Friend said the company had demonstrated the resilience of its portfolio by delivering modest reported revenue growth while managing headwinds associated with repositioning the business in a challenging operating environment. He added that Nike was making necessary changes to support a full recovery and taking real-time decisions to protect the long-term health of its brands.
While the quarter pointed more towards stabilisation than renewed growth, the results highlight the scale of Nike’s ongoing reset. As the group rebalances its channel strategy and sharpens execution, investors and industry watchers are likely to look to the coming quarters for clearer evidence that the turnaround is gaining traction.
