Nike has reported a sharp decline in profitability for the first nine months of its 2026 fiscal year, even as revenues edged higher, highlighting growing pressure on margins across the global sportswear market.
The US-based sportswear giant posted total revenue of $35.43 billion between June and February, marking a modest 1% year-on-year increase. However, net income fell significantly by 32% to $2.04 billion, underscoring rising operational costs and regional imbalances.
A key factor behind the profit decline was a 6% increase in the cost of sales, which climbed to $20.9 billion. At the same time, performance varied sharply across regions. While North America—Nike’s largest market—delivered a 5% revenue increase to $15.68 billion, the company faced a notable slowdown in China, where sales dropped 12% to $4.55 billion.
In the Europe, Middle East and Africa (EMEA) region, revenues slipped 2% to $9.6 billion, while Asia Pacific and Latin America also recorded a 2% decline.
Footwear remained Nike’s dominant category, accounting for nearly 65% of total revenue, generating $22.42 billion despite a slight 1% dip. Apparel sales showed resilience, rising 2% to $10.4 billion, while equipment revenue fell 1% to $1.65 billion.
Elliott Hill, president and chief executive, stated that the company is actively taking steps to improve the overall quality and health of its business. He emphasized that while progress varies across product segments, strategic priorities continue to support growth.
Hill added that Nike’s “Win Now†initiatives are expected to impact results in the short term but reaffirmed confidence in the company’s ability to drive sustainable, long-term profitable growth.