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.
16 Articles
16 Articles
Nike’s Middle-Innings Push: Hill’s Win Now Gambit Targets Sports Glory Amid China Drag
Just over a year into his tenure, Nike CEO Elliott Hill declared the company in the “middle innings” of a gritty comeback, leaning hard into sports spectacles to revive its fortunes. The athletic giant posted second-quarter fiscal 2026 revenue of $12.4 billion, a modest 1% rise from the prior year, as North American strength offset weakness elsewhere. Hill, speaking on an earnings call, emphasized that Nike remains “nowhere near our potential,” …
Goldman Turns “Incrementally Cautious” On Nike As China Sales Plunge
Goldman Turns “Incrementally Cautious” On Nike As China Sales Plunge Nike shares tumbled the most in eight months in premarket trading in New York after a mixed third quarter, reigniting concerns that turnaround efforts are being slowed by soft demand trends in China and ongoing problems at Converse. North America was a bright spot in second-quarter earnings. Citi analyst Paul Lejuez noted that product liquidations contributed to the growth. As…
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