Nike Net Income Jumps 407% on Tariff Recovery Benefit
The sportswear company reported fourth-quarter net income of $1.1 billion, bolstered by a nearly $1 billion tax-related gain.
Nike (NKE), the sportswear maker, reported a sharp increase in fourth-quarter net income to $1.1 billion.
The result was driven primarily by a $986 million benefit related to the expected recovery of IEEPA tariffs following a U.S. Supreme Court ruling on February 20, 2026. This one-time gain pushed fourth-quarter diluted EPS to $0.72, which included a $0.52 benefit from the recoveries, compared to $0.14 in the prior-year fourth quarter.
Revenue for the quarter was $11.0 billion, down 1% on a reported basis and 4% on a currency-neutral basis. The decline was less severe than the prior-year fourth quarter, when revenues fell 12% reported and 11% currency-neutral.
Wholesale revenues rose 4% to $6.6 billion, reversing a 9% reported decline from the same period last year. NIKE Direct revenues fell 7% to $4.1 billion, though this represented a smaller drop than the 14% decline reported in the prior-year fourth quarter.
Regional performance diverged. North America EBIT surged 91% to $2.0 billion. In contrast, Greater China EBIT fell 20% to $243 million.
Converse revenues fell 32% to $244 million, accelerating a decline from a 26% drop in the prior-year fourth quarter. Jordan Brand revenues for the full fiscal year were $7.03 billion, down 3% on a reported basis and 5% on a currency-neutral basis compared to fiscal 2025.
Full year fiscal 2026 revenues were $46.4 billion, flat on a reported basis, compared to fiscal 2025 revenues of $46.3 billion. Full year gross margin increased 20 basis points to 42.9%.