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Nike Fourth-Quarter Revenue Slips as Expected Tariff Refunds Boost Earnings

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Nike Fourth-Quarter Revenue Slips as Expected Tariff Refunds Boost Earnings

Nike's (NKE) fiscal fourth-quarter revenue slipped year-over-year, while the sportswear company's earnings got a boost from expected tariff refunds.

Revenue fell 1% to $10.97 billion for the quarter ended May 31, topping the FactSet-polled consensus of $10.85 billion. Earnings per share soared 414% to $0.72, driven by a $0.52 benefit related to the expected recovery of trade tariffs.

The US Supreme Court in February invalidated President Donald Trump's reciprocal tariffs imposed under the International Emergency Economic Powers Act.

"We delivered fourth-quarter results in line with our expectations, demonstrating financial discipline in an increasingly challenging operating environment, where sell-through remains challenged," Chief Financial Officer Matthew Friend said in a statement.

The stock fell 4.3% in after-hours trade, and is down 36% this year through Tuesday close.

Revenue for the Nike brand was virtually flat at $10.72 billion, weighed down by a 12% drop in China. North American sales grew 3%, while Europe, the Middle East and Africa fell 1%.

Consolidated equipment and footwear revenue for the Nike brand declined.

Chief Executive Elliott Hill acknowledged the company continues to face top-line headwinds, but said it remains focused on "consistent execution" and profitability.

Macro pressures and internal challenges were expected to drive a soft quarterly performance at Nike, Oppenheimer said Friday. The brokerage said 2026 is shaping up to be a restructuring year for Nike and recommended staying on the sidelines until there's more visibility into a broader recovery.

Last week, Nike said David Denton will join the company as chief financial officer in August, succeeding Friend. Denton has served as CFO of Pfizer (PFE) since May 2022.

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