US sportswear retailer Nike reported full-year revenue of $46.39bn for fiscal year 2026, while fourth-quarter (Q4) profit rose on an expected tariff recovery alongside continued weakness in China and Europe.

For Q4 ended 31 May 2026, revenue fell by 1% on a reported basis to $10.97bn and was down 4% on a currency-neutral basis.

Gross margin increased by 890 basis points to 49.2%, mainly due to an approximately 900-basis point benefit from the anticipated recovery of International Emergency Economic Powers Act tariffs, valued at $986m.

Diluted earnings per share increased to $0.72 from $0.14 a year earlier, including a $0.52 benefit related to the same tariff recovery.

Net income rose by just over four times, or 407%, to $1.06bn in the quarter.

Nike Brand revenue was unchanged on a reported basis at $10.72bn but declined 3% on a currency-neutral basis, as falls in Greater China and Europe, Middle East & Africa (EMEA) were offset by growth in North America.

Wholesale revenue rose by 4% to $6.6bn in the quarter, while revenue from Nike Direct – the company's D2C division – decreased by 7% to $4.1bn.

The decline in Nike Direct reflected a 12% drop in Nike Brand Digital and a 7% fall in Nike-owned stores.

Converse brand revenue fell 32% to $244m, with declines across all territories.

By region, North America grew by 3% to $4.83bn in Q4.

Greater China fell by 12% to $1.29bn on a reported basis and declined 17% on a currency-neutral basis, while footwear revenue in the region dropped by 13%.

EMEA revenue edged down 1% to $2.97bn and was down 6% on a currency-neutral basis.

For the full year, revenue was flat on a reported basis at $46.39bn and fell 2% on a currency-neutral basis.

Gross margin increased by 20 basis points to 42.9%.

Net income declined by 3% to $3.10bn, while diluted earnings per share also fell by 3% to $2.10.

Full-year wholesale revenue increased by 6% to $27.5bn, while Nike Direct revenue declined by 6% to $17.7bn.

Converse revenue for the year fell by 31% to $1.2bn.

Nike president and CEO Elliott Hill said: "In fiscal 2026, we took decisive actions to strengthen the foundation of Nike and reposition our business for long-term growth.

"While we continue to face top-line headwinds, we are encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realise our full potential."

"Nike swings to Q4 profit on tariff refund boost, but China slump deepens" was originally created and published by Retail Insight Network, a GlobalData owned brand.