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NIKE, Inc. Quarterly Report for Q1 Ended Aug 31, 2026

Filing Date
Filed October 2, 2026
Period End
August 31, 2026
Security
NKE
In the record · 2016–202610-K1110-Q338-K113

NKE filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 113 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Aug ’19Aug ’19
  2. Leadership change8-K · Nov ’21Nov ’21
  3. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-Q filed October 2, 2026. Cited figures are marked; the original filing is the authoritative source.

Nike, Inc. reported revenues of $11.213 billiona for the three months ended August 31, 2026, a decrease of 4% from $11.720 billion in the prior year period.

On a currency-neutral basis, revenues decreased by 5%. This decline was primarily driven by reduced sales in Greater China and Europe, Middle East & Africa, as well as the Converse segment. Diluted earnings per share were $0.48b, a slight decrease from $0.49 in the prior year.

The company highlighted ongoing strategic actions to rebalance its product portfolio and marketplace, including increased discounting and inventory liquidation to make way for new products. These actions, while impacting short-term revenues, are deemed necessary for long-term health and shareholder value. Despite the revenue decline, Nike saw a positive trend in gross margin, which increased by 60 basis points to 42.8%c.

This improvement was mainly due to lower warehousing and logistics costs, alongside favorable foreign currency hedging. The company also announced a significant multi-year enterprise program called 'Pace,' aimed at enhancing productivity and reducing costs, with an expected pre-tax charge of approximately $1.0 billiond and projected cumulative savings of $2.5 billion through fiscal 2031. Nike returned approximately $0.6 billion to shareholders through dividends in the quarter.

02—Key points

Key Highlights

  1. Revenues decreased by 4% to $11.213 billion for the three months ended August 31, 2026, primarily driven by currency-neutral declines in Greater China and EMEA.
  2. Diluted earnings per share (EPS) were $0.48, down from $0.49 in the prior year period.
  3. Gross margin improved by 60 basis points to 42.8%, driven by lower warehousing and logistics costs and favorable foreign currency hedges.
  4. Strategic actions, including increased discounting and inventory liquidation, are impacting revenues but are intended to improve long-term business health.
  5. Converse segment revenue declined significantly by 28% on a currency-neutral basis, reflecting a brand reset.
  6. Nike announced the 'Pace' enterprise program targeting cost savings of $2.5 billion by fiscal 2031, with an estimated $1.0 billion in pre-tax charges.
  7. The company returned $0.6 billion to shareholders through dividends during the quarter.

03—Questions

Frequently Asked Questions

  1. What is the primary reason for the decrease in Nike's revenue?

    Nike's revenue decreased by 4% to $11.213 billion for the quarter ended August 31, 2026. This decline was primarily attributed to currency-neutral decreases in Greater China and Europe, Middle East & Africa, along with a significant drop in the Converse segment. The company is also actively managing inventory through discounting and other strategies, which are impacting short-term sales.

  2. How did Nike's profitability fare in this quarter?

    While revenues declined, Nike's gross margin improved by 60 basis points to 42.8%. This improvement was driven by lower warehousing and logistics costs, and favorable foreign currency hedging. However, net income saw a slight decrease to $712 million from $727 million in the prior year, resulting in a minor dip in diluted EPS to $0.48 from $0.49.

  3. What is the 'Pace' program, and what are its financial implications?

    The 'Pace' program is a new multi-year enterprise initiative launched to enhance productivity, improve organizational effectiveness, and reduce Nike's cost structure. It is expected to deliver approximately $2.5 billion in cumulative savings by fiscal 2031. However, it also comes with an estimated pre-tax charge of around $1.0 billion, primarily for employee severance and related costs, with a portion expected to be recognized in fiscal 2027.

  4. How is Nike returning value to shareholders?

    Nike returned approximately $0.6 billion to shareholders through dividend payments during the quarter ended August 31, 2026. The company also has a significant share repurchase program, though repurchases were paused during this quarter. While no shares were repurchased in the reported quarter, the company may resume repurchases in the future based on market conditions and liquidity.

04—Continue

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