Daily newsletter · Fri 2 Oct 2026
Nike's China sales fell 22% and its outlook undershot even the bears
Nike reported after Thursday's close in New York. First-quarter revenue fell 4% to US$11.2 billion, a little short of the US$11.3 billion analysts expected. Earnings of 48 US cents a share beat the 44 cents forecast.
Monday's edition named Greater China as the line to watch, and it got worse. Revenue there fell 22% to US$1.18 billion. In the quarter Nike reported in June, it had fallen 17%.
Elsewhere the news was better. North America grew 2%, inventory fell 3% to US$7.8 billion, and gross margin rose to 42.8% from 42.2%. Leaner stock means less discounting to clear it.
The outlook did the damage. Nike now expects revenue to fall by a high-single-digit percentage this financial year, with adjusted earnings of US$1.15 to US$1.35 a share. Analysts had about US$1.66.
Even Bank of America, which downgraded Nike last Friday, had pencilled in US$1.43. The shares closed the regular session 0.71% lower at US$35.15, then fell about 5% in after-hours trading.
the December quarter. Margins and inventory are moving the right way, and China is moving the wrong way faster. I'd want to see the China decline narrow before giving the rest much weight.
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