NKE 8-K: Smart Summary

NIKE, Inc. reported fiscal 2026 fourth quarter and full year results for the period ended May 31, 2026. Full year revenues were $46.4B, flat on a reported basis, while Q4 revenues were $11B, down 1% on a reported basis. A significant Q4 earnings driver was the expected recovery of IEEPA tariffs, which provided an approximately 900 basis point gross margin benefit and a $0.52 per diluted share benefit in the quarter.

• Q4 revenues: $11B, down 1% reported and down 4% on a currency-neutral basis YoY
• Full year revenues: $46.4B, flat (0%) reported and down 2% on a currency-neutral basis YoY
• Q4 gross margin: 49.2%, up 890 basis points YoY (40.3% prior year); includes ~900 basis point benefit from expected IEEPA tariff recovery of $986M
• Full year gross margin: 42.9%, up 20 basis points YoY (42.7% prior year)
• Q4 net income: $1.1B, up 407% YoY; full year net income: $3.1B, down 3% YoY
• Q4 diluted EPS: $0.72 (includes $0.52 IEEPA benefit), up 414% YoY ($0.14 prior year); full year diluted EPS: $2.10, down 3% YoY ($2.16 prior year)
• Q4 net income margin: 9.7% vs. 1.9% prior year; full year net income margin: 6.7% vs. 7.0% prior year
• Q4 total NIKE, Inc. EBIT: $1.3B, up 346% YoY; EBIT margin: 12.0% vs. 2.7% prior year
• Full year EBIT: $3.9B, up 2% YoY; EBIT margin: 8.3% vs. 8.2% prior year
• Q4 selling and administrative expense: $4.1B, down 2% YoY; full year: $16.1B, flat YoY
• Q4 effective tax rate: 19.6% vs. 33.6% prior year; full year: 20.3% vs. 17.1% prior year

• North America Q4: $4.8B, up 3% reported and up 3% currency-neutral; full year: $20.5B, up 5% reported and up 5% currency-neutral
• North America Q4 EBIT: $2B, up 91% YoY (includes $965M IEEPA tariff recovery benefit); full year EBIT: $5.4B, up 14% YoY
• EMEA Q4: $3B, down 1% reported and down 6% currency-neutral; full year: $12.6B, up 3% reported and down 3% currency-neutral
• EMEA Q4 EBIT: $434M, down 8% YoY; full year EBIT: $2.4B, down 6% YoY
• Greater China Q4: $1.3B, down 12% reported and down 17% currency-neutral; full year: $5.8B, down 11% reported and down 13% currency-neutral
• Greater China Q4 EBIT: $243M, down 20% YoY; full year EBIT: $1.3B, down 20% YoY
• Asia Pacific & Latin America Q4: $1.6B, up 1% reported and down 1% currency-neutral; full year: $6.2B, flat (0%) reported and down 1% currency-neutral
• Converse Q4: $244M, down 32% reported and down 34% currency-neutral; full year: $1.2B, down 31% reported and down 32% currency-neutral; Q4 EBIT: $23M (includes $21M IEEPA benefit), down 15% YoY; full year EBIT: $18M, down 93% YoY
• Wholesale Q4: $6.6B, up 4% reported and up 1% currency-neutral; full year: $27.5B, up 6% reported and up 4% currency-neutral
• NIKE Direct Q4: $4.1B, down 7% reported and down 9% currency-neutral (NIKE Brand Digital down 12%; NIKE-owned stores down 7%); full year: $17.7B, down 6% reported and down 8% currency-neutral
• Jordan Brand full year revenues: $7B, down 3% reported and down 5% currency-neutral YoY ($7.3B prior year)

• Cash and equivalents: $7.6B at May 31, 2026, up 1% YoY; short-term investments: $1.5B, down 13% YoY; combined cash and equivalents and short-term investments: $9B, down approximately $100M from prior year
• Inventories: $7.5B, flat (0%) YoY
• Q4 shareholder returns: approximately $609M returned through dividends, up 3% from prior year Q4
• Full year total shareholder returns: approximately $2.5B, including dividends of $2.4B (up 5% from prior year) and share repurchases of $123M (1.8 million shares retired)
• Share repurchase program: four-year, $18B program approved by the Board of Directors
• Q4 dividends declared per share: $0.410 vs. $0.400 prior year; full year: $1.630 vs. $1.570 prior year
• Long-term debt: $5.9B at May 31, 2026, down 25% YoY; current portion of long-term debt: $2B (up from $0 prior year)
• Shareholders' equity: $14.9B, up 13% YoY

• "In fiscal 2026, we took decisive actions to strengthen the foundation of NIKE, Inc. and reposition our business for long-term growth. We made meaningful structural improvements to lay the groundwork for our Sport Offense across our team culture, innovative product, brand strength, and how we serve consumers in our countries and cities. While we continue to face top-line headwinds, we're encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential." — Elliott Hill, President and Chief Executive Officer, NIKE, Inc.
• "We delivered fourth quarter results in line with our expectations, demonstrating financial discipline in an increasingly challenging operating environment, where sell-through remains challenged. We are improving the health of our business, managing our product portfolio and investing in marketplace elevation, while adjusting our operating costs for greater efficiency over time." — Matthew Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc.

• No forward guidance for next quarter or full year was provided in the filing.