Q2 2026 Nike Inc Earnings Call Transcript
Key Points
- Nike Inc (NKE) reported 8% wholesale growth, indicating strong demand and effective partner relationships.
- North America led the way with over 20% wholesale growth, showcasing successful market strategies and consumer engagement.
- The company is seeing significant traction in its Performance business, validating its product innovation strategy.
- Nike Inc (NKE) is diversifying its product portfolio, with new innovations like the NIKE Mind footwear platform and Aero-FIT apparel.
- The order book for the back half of the year is improving, signaling confidence in future sales growth.
- Gross margins declined by 300 basis points, primarily due to increased product costs and inventory obsolescence in Greater China.
- Nike Inc (NKE) is facing challenges in Greater China, with a 16% revenue decline and ongoing market reset efforts.
- The company is navigating significant headwinds from $1.5 billion in annualized incremental product costs due to higher US tariffs.
- Nike Digital saw a 14% decline, indicating challenges in the digital sales channel.
- The recovery in certain geographies and product lines is not expected to be linear, with ongoing pressures in China and Converse.
Good afternoon, everyone, and welcome to NIKE, Inc.'s second-quarter fiscal 2026 conference call. For those who want to reference today's press release, you'll find it at investors.nike.com. Leading today's call is Paul Trussell, VP of Corporate Finance and Treasurer.
I'd now like to turn the call over to Paul Trussell.
Thank you, operator. Hello, everyone, and thank you for joining us today to discuss NIKE, Inc.'s second-quarter fiscal 2026 results. Joining us on today's call will be NIKE, Inc. President and CEO, Elliot Hill; and EVP and CFO, Matt Friend.
Before we begin, let me remind you that participants on this call will make forward-looking statements based on current expectations, and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in NIKE's reports filed with the SEC.
In addition, participants may discuss non-GAAP financial measures and
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