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Nike Q4 Profit Surges 407% on Tariff Refund, Revenue Slides

7/2/2026

Summary

Nike Posts Surge

Nike posted Q4 fiscal 2026 earnings of $1.1 billion, up 407% from a tariff-refund benefit.
Q4 revenue slipped 1% to $10.97 billion, a 4% currency-neutral decline.
Metrics showed gross margin rise 890 basis points to 49.2% and adjusted EPS hit $0.20, beating $0.13.
Wholesale revenue grew 4% to $6.6 billion while Nike Direct fell 7% to $4.1 billion.
Nike forecasts a mid-single-digit revenue decline and a 10% tariff through July, rising to 15% thereafter.

Summary

Nike Overhauls Retail

Converse revenue fell 32%, prompting analysts to suggest Nike consider exiting the brand.
CEO Elliott Hill said Nike refreshed over 15,000 wholesale doors, upgraded 150 DTC stores and will close misaligned locations.
Nike will upgrade its Mercurial, Tiempo and Phantom soccer-boot lines within 12 months to spur global interest.
Nike targets remodeling 50 % of company-owned stores by fiscal year 2027, with 150 flagship stores already upgraded.

Summary

Nike Outfits Germany

Matthew Friend will leave Nike in August, with David Denton succeeding as CFO and receiving $7.3 million bonus while Friend receives a $2 million lump-sum.
Shares have fallen 35% this year to a 1.3 price-to-sales multiple, with Bank of America (BofA) analysts noting that margins are offsetting China sales concerns despite muted market reaction to earnings beat.
Nike will become German national team’s outfitter in early 2027, ending Adidas’s 77-year tenure.

History

Historical Context

In the 1920s–1970s Converse led U.S. basketball shoes, but competition and poor decisions eroded its market share, leading to bankruptcy and multiple ownership changes. Nike bought the struggling brand in July 2003 for $305 million, using the deal to broaden its portfolio. Leveraging that legacy, Nike will replace Adidas as Germany’s national-team kit supplier in 2027, extending its sponsorship push.

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Nike Posts Surge

Nike posted Q4 fiscal 2026 earnings of $1.1 billion, up 407% from a tariff-refund benefit.
Q4 revenue slipped 1% to $10.97 billion, a 4% currency-neutral decline.
Metrics showed gross margin rise 890 basis points to 49.2% and adjusted EPS hit $0.20, beating $0.13.
Wholesale revenue grew 4% to $6.6 billion while Nike Direct fell 7% to $4.1 billion.
Nike forecasts a mid-single-digit revenue decline and a 10% tariff through July, rising to 15% thereafter.

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