Nike Inc (NYSE:NKE, XETRA:NKE) Shares Plunge After Flat Revenue and Cautious Outlook

Font: Financial Modeling Prep  • Apr 01, 2026

• Significant Share Price Drop: Nike (NYSE:NKE) shares fell over 14% following flat quarterly revenue and a cautious outlook.
• Mixed Financial Performance: Quarterly revenue was $11.28 billion (flat year-over-year), with earnings per share of $0.35 beating estimates, but net income dropped by 35% to $500 million.
• Regional and Segment Challenges: North America grew 3%, Greater China declined 7%, and Converse revenue dropped 35% across all markets.

Nike Inc (NYSE:NKE, XETRA:NKE) recently faced a significant drop in its share price, falling over 14% on Wednesday. This decline came after the company reported unchanged quarterly revenue compared to the previous year and issued a cautious outlook for the upcoming months. Nike's guidance for the fourth quarter anticipates a revenue decline of 2% to 4%, which contrasts with Wall Street analysts' expectations of a 2% growth.

For the quarter ending February 28, Nike reported revenue of $11.28 billion. This figure was flat on a reported basis and down 3% on a currency-neutral basis, slightly surpassing the consensus estimate of $11.23 billion. Wholesale sales increased by 5% to $6.5 billion, while Nike Direct revenue decreased by 4% to $4.5 billion. The decline in Nike Direct revenue was attributed to weaker digital sales and lower performance at company-owned stores.

Despite these challenges, Nike's earnings per share of $0.35 exceeded the estimated $0.31. However, the company's gross margin declined by 130 basis points to 40.2%, primarily due to higher tariffs in North America. Net income fell by 35% to $500 million, or $0.35 per diluted share. Regionally, North America saw modest growth of 3%, while Greater China experienced a 7% decline.

Additionally, Converse revenue dropped by 35%, reflecting declines across all markets. CEO Elliott Hill described the quarter as part of a broader effort to strengthen the business. He emphasized that while the work is ongoing, the company is making progress on prioritized initiatives. Hill stated, "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."