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Nike tops earnings estimates as rising North America sales help to offset China weakness
Nike's Q2 revenue rose 1% to $12.4 billion, driven by a 9% increase in North America sales amid CEO Elliott Hill's ongoing turnaround strategy.
- Thursday's results showed Nike's fiscal second-quarter 2026 growth driven by North America, with analysts expecting 38 cents EPS and $12.22 billion revenue, and an investor call at 5 p.m. ET.
- Elliott Hill has pursued a turnaround focused on clearing inventory and wholesale investments, while under the 'Win Now' strategy, leadership changes earlier this month included Craig Williams' departure.
- Tariff increases are hitting results as Nike said tariffs are now expected to cost $1.5 billion, up from $1 billion earlier this year, with gross margin impact between 3 and 3.75 points continuing into the new year.
- Investor attention centers on Nike stock after a more than 11% drop this year, as Wall Street and analysts watch holiday demand closely in Thursday's quarter report.
- The company has reported a strong start with its NikeSKIMS partnership, but Elliott Hill, Nike CEO, said the turnaround timeline means it will "take a while" to return to profitable growth in direct business.
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Nike edges past quarterly revenue expectations on resilient demand
Nike on Thursday edged past market expectations for quarterly revenue, helped by resilient demand for its running shoes amid a big marketing push to fend off stiff competition from upstart brands in North America.
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Leaning Left1Leaning Right0Center9Last UpdatedBias Distribution90% Center
Bias Distribution
- 90% of the sources are Center
90% Center
C 90%
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