By Pedro Goncalves
Publication Date: 2026-04-01 08:04:00
Nike is the number one trending ticker on Yahoo Finance this morning, but not for the best of reasons: the stock is down 9% in pre-market trading after the group issued a weaker-than-expected sales outlook.
The sneaker maker said revenue for the current quarter would decline by between 2% and 4%, reflecting an anticipated 20% drop in its key China market over the same period. For the full calendar year, finance chief Matthew Friend said the company expects sales to fall by a low single-digit %, with growth in North America offset by declines in China.
Net income for the three months to 28 February fell to $520m, or 35 cents per share, down 35% from $794m, or 54 cents per share, a year earlier. The decline came as Nike’s gross margin narrowed by 1.3 percentage points to 40.2%, which the company said was “primarily due to higher tariffs in North America”.
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Sales were broadly flat at $11.28bn, compared with $11.27bn a year ago, showcasing an uneven turnaround under chief executive Elliott Hill.
“Parts of it are taking longer than I’d like, but the direction is clear,” Hill said of the turnaround.
Wholesale revenue climbed 5% to $6.5bn. Meanwhile, direct sales slid 4% to $4.5bn.
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