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Nike’s revenue, gross margin, and inventory move with consumer demand, product and regional mix, wholesale versus direct sales, pricing and discounts, costs, currency, and inventory decisions. In fiscal 2026, revenue was nearly flat in reported dollars but declined 2% on a currency-neutral basis; gross margin edged up to 42.9%. Inventory was $7.5 billion at year-end and $7.8 billion three months later. Those figures describe different periods and measures, and the exceptional fiscal fourth-quarter margin included an expected tariff-recovery benefit.
What do the latest figures show?
Nike’s fiscal year ends May 31. Fiscal 2026 ended May 31, 2026; its first quarter of fiscal 2027 ended August 31, 2026. The comparison below keeps annual results, quarterly results, and point-in-time inventory balances separate.
| Measure | Fiscal 2026 or May 31, 2026 | Fiscal 2027 Q1 or August 31, 2026 |
|---|---|---|
| NIKE, Inc. revenue | $46.4 billion; flat reported and down 2% currency-neutral | $11.2 billion; down 4% reported and 5% currency-neutral |
| Gross margin | 42.9%, up 20 basis points for the year | 42.8%, up 60 basis points year over year |
| Inventory | $7.5 billion at May 31; flat year over year | $7.8 billion at August 31; up 5% from May |
Currency-neutral changes adjust for foreign-exchange effects and are non-GAAP measures, not reported GAAP revenue. Nike’s fiscal 2026 Form 10-K and fiscal 2027 first-quarter Form 10-Q provide the company’s detailed explanations. The annual filing attributes the currency-neutral revenue decline chiefly to Greater China, Converse, and EMEA, partly offset by North America.
What drives Nike’s revenue?
Revenue reflects how many products Nike sells and the average price it realizes, shaped by demand, product mix, geography, sales channel, discounts, and currency. A change in one part of the business can be offset by another, so no single figure explains the total.
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Product categories: footwear, apparel, and equipment
NIKE Brand footwear is the largest category. In fiscal 2026 it generated $29.5 billion, about 65% of NIKE Brand revenue, flat in reported dollars and down 2% currency-neutral. Apparel brought in $13.4 billion and equipment $2.2 billion. Currency-neutral apparel revenue rose 2%, while footwear and equipment each declined 2%.
Units and average selling price (ASP) both matter. Footwear unit sales fell 1%; lower ASP reduced footwear revenue growth by about one percentage point, with channel mix the primary reason and product mix and strategic pricing partly offsetting it. Apparel unit sales rose 1%, while higher ASP added about one percentage point, mainly from product mix and partly offset by discounts and channel mix. Nike’s disclosures report category-level movements; they do not establish that a particular shoe model caused the results.
Wholesale and NIKE Direct
NIKE Brand wholesale revenue was $27.5 billion in fiscal 2026, up 4% currency-neutral. NIKE Direct, which includes Nike-owned stores and digital platforms, generated $17.7 billion, down 8% currency-neutral. Within Direct, digital sales fell 12%, primarily because of reduced traffic, and store sales fell 4%. Thus, weakness in Direct was partly offset by wholesale growth rather than explaining the whole company result by itself.
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- Leather and synthetic leather are durable with a classic look.
- Full-length Nike Air unit adds cushioning to your step.
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The channel picture remained pressured in fiscal 2027 Q1. Direct revenue was $4.1 billion versus $4.5 billion a year earlier. Wholesale revenue was $6.8 billion in both periods in reported dollars, but declined currency-neutral; Nike cited Greater China weakness partly offset by North America.
Geography and consumer demand
Nike reports NIKE Brand operations across North America, EMEA, Greater China, and Asia Pacific & Latin America (APLA), with Converse reported separately. Demand can vary with sport popularity, design trends, consumer preferences, seasonal and regional needs, macroeconomic conditions, and operational or logistics factors. Nike describes adjusting products, channels, and marketing in response; those disclosures do not prove that any one campaign or product drove a particular period’s results.
For fiscal 2026, Nike identified Greater China, Converse, and EMEA as the principal sources of the company’s currency-neutral decline, with North America providing a partial offset. That is a description of that year, not a complete explanation for all future revenue changes.
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- Full-length Nike Air unit adds cushioning to your step.
- Solid rubber sole is durable and provides traction over various surfaces.
Pricing, discounts, and currency
A higher sales volume does not necessarily mean higher revenue if the average price falls; likewise, higher ASP can reflect product mix rather than a broad price increase. Strategic pricing, discounting, and the balance of products and channels influence realized prices. Reported results also reflect foreign-exchange translation and hedges. When comparing periods, distinguish reported changes from currency-neutral ones rather than treating them as interchangeable.
What affects Nike’s gross margin?
Gross margin is the share of revenue remaining after the cost of sales. It is affected by realized selling prices and discounts, product and channel mix, product costs, warehousing and logistics, currency, and results across Nike’s brands.
Fiscal 2026: small net improvement from offsetting factors
Fiscal 2026 gross margin was 42.9%, compared with 42.7% in fiscal 2025. Nike’s approximate bridge credited about 20 basis points each to lower warehousing and logistics costs, favorable net currency changes including hedges, and lower other costs. Lower Converse margin and higher NIKE Brand product costs each reduced margin by about 20 basis points. The component figures are rounded, so they need not sum exactly to the reported 20-basis-point increase.
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Why fiscal fourth-quarter margin is an outlier
Fiscal 2026 Q4 gross margin rose 890 basis points to 49.2%. Nike said the expected recovery of $986 million in IEEPA tariffs contributed approximately 900 basis points. That unusual benefit is roughly as large as the reported margin expansion itself, so the quarter’s headline rate should not be read as an ordinary recurring operating improvement.
In its June 30, 2026 results release, CEO Elliott Hill said Nike continued to face top-line headwinds and was focused on execution, improved profitability, and scaling progress in performance product. CFO Matthew Friend said sell-through remained challenged. The release therefore pairs the unusual margin benefit with a difficult sales backdrop rather than suggesting that the headline rate alone signals stronger underlying demand.
Near-term actions can pressure results
In fiscal 2027 Q1, Nike described efforts to reduce supply of selected footwear to rebalance its portfolio, reposition NIKE Brand Digital as a full-price platform while reinvesting in wholesale, clear inventory through markdowns and partner returns or discounts, and invest in demand creation. The company said these measures can weigh on revenue and profitability while they are underway. Q1 gross margin was 42.8%, up 60 basis points year over year, primarily because of lower warehousing and logistics costs.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should Nike’s inventory be interpreted?
Inventory is a balance at a specific date, not a measure of sales over a period. At May 31, 2026, Nike reported $7.5 billion of inventory, flat year over year: more units were offset by shifts in product mix. At August 31, inventory was $7.8 billion, up 5% from May, primarily because of product-mix shifts.
The increase between those dates alone does not establish that demand strengthened or deteriorated. Nike’s disclosures identify units and mix as relevant context, but do not provide a full inventory-quality assessment or a forecast of future demand. The company’s stated use of selected supply reductions, markdowns, and wholesale partner returns is part of its effort to rebalance stock and make room for new products.
Quick Recap
How to compare Nike’s results without confusing the signals
- Match the period: distinguish a fiscal-year result from a quarter and an inventory balance-sheet date.
- Check the currency basis: reported results include currency effects; currency-neutral change is a non-GAAP comparison.
- Separate channels: compare Direct with wholesale, and inspect digital and stores within Direct where available.
- Look at units and ASP together: a sales change may reflect volume, realized price, or both.
- Break out mix: footwear, apparel, equipment, geography, and brand results can move differently.
- Isolate unusual items: the fiscal 2026 Q4 tariff recovery makes that quarter’s margin a poor stand-alone guide to recurring performance.
- Read inventory with units and product mix: a dollar balance by itself does not diagnose demand.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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