Corporate skateboarding shoe juggernaut Nike is showing some life back home in North America, but over in China things are still rough.
The latest numbers came out Thursday and while the top line looked okay, the forecast for the next quarter left investors uneasy and the stock got hit, dropping almost ten percent Friday.
According to reports, for the second quarter of fiscal 2026, Nike pulled in $12.4 billion in revenue. That’s basically flat compared to last year if you ignore currency changes, but technically up one percent.
Breaking it down region by region, North America was the bright spot with a nine percent lift in constant dollars. Meanwhile, China is still struggling with sales down sixteen percent, and other areas like Asia Pacific and Latin America were off by four percent. Europe saw a one percent dip.
Nike’s sales channels are telling a mixed story. Wholesale is back in the game, up eight percent, mostly thanks to North America. That move comes after the company spent years focusing more on its own stores and digital channels.
Speaking of which, the direct-to-consumer side was shaky, with companywide sales down eight percent. Digital took the hardest hit, dropping fourteen percent, while physical stores were down three percent.
Profit numbers also took a hit. Gross margin fell to 40.6 percent, largely because of higher tariffs in North America. Net income dropped thirty-two percent to $0.8 billion, and earnings per share also fell thirty-two percent to fifty-three cents.
Nike’s leadership is trying to steer through the turbulence. CEO Elliott Hill said they’re working on the areas they see as most critical first and want to get the company growing and profitable again.
CFO Matthew Friend added that the market is tricky right now, but they’re handling it while adjusting the business to stay competitive.
Even with some wins, the outlook for the coming quarter made Wall Street nervous, which is why the stock slipped.
Nike is showing that recovery in its home market is real, but the road ahead in China and other international markets is still bumpy.