NIKE's Q4 Breakdown: Operating Metrics, Outlook & Prospects

NIKE, Inc. NKE reported better-than-expected fourth-quarter fiscal 2026 results, with both earnings per share (EPS) and revenues exceeding the Zacks Consensus Estimate. The company’s EPS of 20 cents increased 42.9% year over year and beat the consensus estimate of 11 cents.However, NKE’s consolidat…

NIKE, Inc. NKE reported better-than-expected fourth-quarter fiscal 2026 results, with both earnings per share (EPS) and revenues exceeding the Zacks Consensus Estimate. The company’s EPS of 20 cents increased 42.9% year over year and beat the consensus estimate of 11 cents.

However, NKE’s consolidated revenues dipped 1% year over year to $10.97 billion but came above the Zacks Consensus Estimate of $10.85 billion. Results were driven by wholesale growth and increased revenues in North America. Also, gains from the expected recovery of tariffs further supported performance. (Read More: NIKE Q4 Earnings Beat Estimates, North America Revenues Up 3%).

We note that NKE’s shares have risen 4.9% yesterday, after reporting fourth-quarter fiscal 2026 results on June 30, 2026. Shares of the Zacks Rank #4 (Sell) company have lost 2.6% in the past six months compared with the industry’s decline of 3.2%.

NIKE, Inc. Price, Consensus and EPS Surprise

NIKE, Inc. price-consensus-eps-surprise-chart | NIKE, Inc. Quote

North America Recovery & Wholesale Growth Aided NKE

North America revenues rose 3% year over year to $4.83 billion. This slightly missed the Zacks Consensus Estimate of $4.85 billion. Within the segment, footwear sales increased 4% to $3.23 billion and apparel sales rose 1% to $1.31 billion. Both categories have outperformed the consensus mark of $3.21 billion and $1.30 billion, respectively. The segment’s earnings before interest and taxes (EBIT) surged a whopping 91% to $2 billion, also exceeding the consensus mark of $348 million. The company’s North America region is showing signs of recovery with growth in running, global football and basketball categories, and gains from “Win Now” actions.

APLA revenues increased 1% on a reported basis to $1.60 billion, outperforming the Zacks Consensus Estimate of $1.56 billion. Footwear remained flat at $1.1 billion, up from $1.08 billion and apparel rose 6% to $420 million, up from the consensus estimate of $404 million. The segment’s earnings before interest and taxes came in at $316 million, up from the consensus estimate of $104 million.

Wholesale revenues increased 4% on a reported basis and 1% on a currency-neutral basis to $6.6 billion, up from the consensus estimate of $6.5 billion. Growth was mainly driven by North America, partly offset by lower revenues in Greater China. The company continued rebuilding relationships with wholesale partners, emphasizing direct-to-consumer sales. Wholesale trends improved, helping offset weakness in NIKE Direct. NIKE Direct revenues declined 7% on a reported basis and 9% on a currency-neutral basis to $4.1 billion. The drop was due to a 12% decline in NIKE Brand Digital and a 7% fall in NIKE-owned stores.

Some Segments Remain Soft in Q4

NIKE continues to remain under pressure in Greater China as it restructures inventory and its marketplace. Greater China revenues were down 12% on a reported basis and 17% on a currency-neutral basis to $1.30 billion. Nevertheless, the segment outpaced the Zacks Consensus Estimate of $1.21 billion. Footwear fell 13% to $938 million, apparel declined 10% to $334 million and equipment dropped 17% to $25 million.

EMEA revenues fell 1% on a reported basis and 6% on a currency-neutral basis to $2.98 billion, almost in line with the consensus estimate. Footwear declined 4% to $1.82 billion, while apparel rose 6% to $982 million and equipment dropped 3% to $172 million.

Converse revenues dropped 32% on a reported basis and 34% on a currency-neutral basis to $244 million due to decreases in all territories. This lagged the Zacks Consensus Estimate of $261 million.

NKE’s Outlook and Key Priorities

Management indicated that the operating environment remains volatile, citing evolving tariff policies, Middle East disruption, oil prices, operating costs, consumer behavior and weaker store traffic and retail sales. For the first quarter of fiscal 2027, NIKE expects reported revenues to decline in the low to mid-single digits. Meanwhile, the fiscal second quarter is expected to further decline sequentially compared with the first quarter. The gross margin is expected to be slightly positive in the fiscal first quarter. The forecast assumes incremental tariff rates of 10% through the end of July and 15% thereafter. SG&A dollars are expected to be flat in the fiscal first quarter.

Although the company’s outlook is not encouraging, NIKE is taking actions to improve EBIT margins and increase cash flow from operations. The company continues to execute its "Win Now" turnaround strategy, which focuses on strengthening culture, accelerating product innovation, reinforcing brand strength and enhancing consumer engagement.

NIKE is expanding its pipeline of innovative footwear and apparel across performance categories, while introducing new Sportswear styles and leveraging performance technologies across multiple product lines. Such efforts are expected to support NIKE's growth trajectory.

Key Picks in the Consumer Discretionary Space

Columbia Sportswear Company COLM, which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average. The Zacks Consensus Estimate for Columbia Sportswear’s current financial-year sales indicates growth of 2.6% from the year-ago number.

Duluth Holdings Inc. DLTH, which deals in casual wear, workwear and accessories for men and women, currently sports a Zacks Rank of 1.

Duluth Holdings delivered a trailing four-quarter earnings surprise of 107.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates a rise of 39.5% from the year-ago number.

Ralph Lauren Corporation RL, which is a leading major designer, marketer and distributor of premium lifestyle products, currently carries a Zacks Rank #2 (Buy). RL delivered a trailing four-quarter earnings surprise of 9.1%, on average.

The Zacks Consensus Estimate for Ralph Lauren’s current financial-year EPS indicates a rise of 10.5% from the year-ago number.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report