NIKE (NYSE:NKE) reported financial results for its fiscal 2026 third quarter ended February 28, 2026, on Tuesday, March 31, 2026.
The company generated total revenues of $11.3 billion, which remained flat on a reported basis compared to the prior-year period and represented a 3% decline on a currency-neutral basis.
The quarterly performance highlighted a significant shift in channel dynamics.
Wholesale revenues grew to $6.5 billion, an increase of 5% on a reported basis (up 1% currency-neutral), suggesting a resurgent reliance on retail partnerships.
NIKE Direct revenues fell 4% to $4.5 billion, declining 7% on a currency-neutral basis.
This trend reflects a challenging environment for the company’s digital and owned-store initiatives as consumer spending patterns fluctuate globally.
Profitability metrics faced downward pressure during the quarter.
Gross margin decreased by 130 basis points to 40.2%, driven by increased promotional activity and higher product input costs.
Net income also dropped 35% to $0.5 billion, resulting in diluted earnings per share of $0.35, also a 35% decrease year-over-year.
Management noted that the results reflect a period of transition as the company rebalances its inventory and refines its product innovation pipeline.