Nike Q1 FY26: Revenue Edges Up 1% to $11.7B as Wholesale Rebounds, Margins Compress
Nike beat EPS at $0.49 with revenue of $11.7B (+1% YoY) as wholesale surged 7% on retailer restocking. But Nike Direct fell 4%, Converse plunged 27%, and gross margin compressed 320bps to 42.2% amid tariff pressure. CEO Elliott Hill's 'Win Now' reset faces real headwinds.
Nike's Q1 FY26 revenue rose 1% to $11.7B, beating EPS estimates at $0.49. Wholesale jumped 7% on retailer restocking while Nike Direct fell 4%; Converse dropped 27%. Gross margin compressed 320bps to 42.2% amid tariffs as CEO Elliott Hill executes 'Win Now' reset.
Why this matters
CEO Elliott Hill's 'Win Now' turnaround shows mixed early signals: wholesale rebound validates retailer relationships, but DTC softness and 320bps margin compression expose tariff and Converse drag.
Retail-company coverage steady at 227 signals in 90d, reflecting consistent earnings flow.