Nike Q4 Revenue and Net Profit Beat Expectations, But a 12% Drop in Greater China Sales Sends Shares Down More Than 3% After Hours

TradingKey - On June 30, EST, after Nike ( NKE) released its fourth-quarter financial results for fiscal year 2026 during post-market trading on the US stock market, its share price once rose over 2% before turning downward. As of press time, it fell 3.58% to $39.58.

[Source: Google Finance]

Consumer goods represented by Nike are no longer the market's focus for mainstream AI investments, but they hold highly valuable observational significance for the market. Specifically, will earnings reports bring incremental capital to undervalued consumer stocks?

Nike's stock price has plummeted significantly over the past year, with a staggering cumulative decline of approximately 45% over the last 52 weeks, nearly cutting its value in half. Market expectations for the company are extremely low, so the focus of this earnings report is not how spectacular the financial data is, but whether the bad news has been fully priced into the stock. As long as there is marginal improvement in inventory, gross margin, or Greater China sales in the report, it could trigger short-covering and a recovery in the stock price.

During the period, Nike's fourth-quarter revenue was $11.0 billion, down 1% year-on-year, but higher than the expected $10.86 billion. Among all regions, sales in Greater China experienced the largest decline, serving as the primary factor dragging down overall performance.

By region, revenue in Greater China was $1.297 billion, down 12% year-on-year, but higher than the market's prior expectation of $1.24 billion; North American revenue was $4.832 billion, up 3% year-on-year, missing analysts' expectations of $4.88 billion; revenue in Europe, the Middle East, and Africa was $2.975 billion, down 1% year-on-year; and revenue in Asia-Pacific and Latin America was $1.596 billion, up 1% year-on-year.

On the earnings front, Nike's fourth-quarter net income was $1.069 billion, up 407% year-on-year; corresponding EPS was $0.72, compared to $0.14 in the same period last year, representing a 414% year-on-year increase. Excluding a $0.52 benefit from tariff refunds, EPS was $0.20, which still beat market expectations.

During the period, the gross margin increased by 8.9 percentage points to 49.2%. Nike stated that this was primarily due to the Supreme Court overturning several of President Trump's global tariff policies, and it currently expects to receive nearly $986 million in tariff refunds.