Nike shares fall after cautious outlook dims turnaround hopes

Nike shares fell 3.5% in premarket trading on July 1 after the company’s latest results and outlook did little to convince investors that Elliott Hill’s turnaround is taking hold. Nike released fiscal 2026 fourth-quarter and full-year results after the market closed on June 30, and the forecast for more revenue pressure in the months ahead overshadowed a modest beat on revenue.

Nike said fourth-quarter revenue was $11.0 billion, down 1% reported and down 4% on a currency-neutral basis, while full-year revenue came in at $46.4 billion, flat reported and down 2% currency-neutral. Gross margin rose 890 basis points to 49.2%, helped by an approximately 900 basis point benefit from the expected recovery of International Emergency Economic Powers Act tariffs, and diluted earnings per share was $0.72, including a $0.52 benefit tied to that tariff recovery. Investors had already pushed Nike shares down about 35% this year before the premarket drop.

Nike projected further revenue declines through the first half of fiscal 2027 as tariff pressure, geopolitical uncertainty and cautious consumers continue to weigh on demand. Nike said fiscal 2027 first-half revenue should fall in the low- to mid-single digits.

China remained the clearest pressure point. Nike Brand revenue was $10.7 billion in the quarter, with declines in Greater China and EMEA partly offset by growth in North America. Wholesale revenue was $6.6 billion, up 4% reported, while NIKE Direct revenue was $4.1 billion.

Hill said the results were “not there yet” and that Nike is not living up to its full potential. Matthew Friend said North America was a bright spot and that consumers are under pressure globally, especially in sportswear. Friend also said Nike would keep cleaning up inventory with retail partners and continue rebuilding marketplace health. Nike is also trying to refresh its product pipeline, with Hill saying the company planned to launch more than a dozen footwear styles. Management pointed to faster product launches, improving football demand after an April slowdown and progress in World Cup marketing, including the “Rip the Script” campaign created with Wieden+Kennedy.