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Nike revenues remained flat at $11.3bn (£8.9bn) for the third quarter ended 28 February 2026, according to financial results released on Wednesday.
The figures represent a 3% decline on a currency-neutral basis as the company navigates a shift in its distribution strategy.
Wholesale revenues grew 5% to $6.5bn (£5.1bn), driven primarily by performance in North America. This growth helped offset a 4% decline in Nike Direct revenues, which fell to $4.5bn (£3.5bn). Digital sales saw a 9% decrease, while Nike-owned stores reported a 5% drop.
The company reported a 35% fall in net income to $500m (£3376.5m), with diluted earnings per share at $0.35. Performance was impacted by a 130 basis point decrease in gross margin to 40.2%, which the firm attributed to higher tariffs in North America.
Selling and administrative expenses rose 2% to $4bn (£3.1bn). Operating overheads increased to $2.9bn (£2.3bn), driven by employee severance costs and foreign currency fluctuations. The company’s effective tax rate rose to 20% compared to 5.9% in the same period last year.
Meanwhile, Nike brand revenues reached $11bn (£8.7bn), up 1% on a reported basis. Growth in the North American market was partially offset by declines across Europe, the Middle East, Africa, and Greater China. Converse revenues fell 35% to $264m (£208m) following declines in all territories.
The news comes amid reports from Bloomberg that Reebok owner Authentic Brands Group has expressed interest in acquiring the Converse Brand should it ever be put up for sale. It is thought that Nike currently has no plans to offload the brand despite its current drag on performance.
Chief executive Elliott Hill said: “This quarter we took meaningful actions to improve the health and quality of our business. The pace of progress is different across the portfolio and the areas we prioritised first continue to drive momentum.
“The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of Nike.”
