Nike Stabilizes in First Half, Records Modest 1% Growth and 31% Profit Decline

Nike is still not winning, but it stops losing. The U.S. fashion and sports equipment company closed the first half of the fiscal year with growth of only 1% compared to the same period in 2024, although profit continues to suffer with a 31% decline.

The swoosh giant closed the period from June to November with sales of 24,147 million dollars and net income of 1,519 million. Currency trends allowed Nike to grow in the first half of the year: at constant exchange rates, sales were flat. Nike also saw its gross margin decline from 44.5% in the first half of fiscal 2024 to 41.4% in the same period this year.

Performance in the second quarter of the year was similar to the first quarter, with sales up 1% and net profit down 32%. Nike’s sales from September to November amounted to 12,427 million dollars and profits to 792 million.

Although flat in revenue and less profitable, Nike has halted the downward trend its business maintained in 2024. Last year, the Oregon giant reduced its turnover by 10% and earned 44% less, losing the $50 billion turnover barrier: the company, embarked on a new strategic plan called Win Now, had a turnover of $46,309 million.

Elliott Hill: “Nike is in the middle innings of our comeback”

Elliott Hill, president and CEO of Nike, said on the occasion of the presentation of first-half results that the company “is in the middle innings of our comeback”. “Fiscal 2026 continues to be a year of taking action through Win Now, including realigning our teams, strengthening partner relationships, rebalancing our portfolio, and winning on the ground; we’re finding our rhythm in our new sport offense, and setting ourselves up for the next phase of athlete-centered innovation in an elevated and integrated marketplace.“ he added.

The company has specified that the sales of the Nike brand have grown of 1% in the second trimester thanks to the thrust of North America, that has partially compensated the falls in China and Latin America.

By channels, Nike brand wholesale sales rose 8% to $7.5 billion, while direct sales fell 8% (digital sales plummeted 14%, while own-store sales fell 3%). On the other hand, Converse’s brand turnover fell 30% to just $300 million in the second quarter.

The company closed the first half of the year on November 30 with inventories of $7.7 billion, down 3% compared to the same period last year. This decline reflects a decrease in units “partially offset by higher product costs, mainly due to higher tariffs”.