Nike Q2 results top estimates, but margins remain sluggish amid tariff-fueled hit

Nike has reported a 1% increase in revenue to $12.4 billion, surpassing analyst expectations; however, the company is grappling with significant margin pressures due to tariffs and disappointing sales in key markets, particularly China and its Converse brand.

Nike's shares have experienced a sharp decline due to disappointing sales in China, prompting the CEO to acknowledge the need for a strategic 'reset' in the region while also dealing with the implications of Trump-era tariffs.

Nike reported a 1% increase in revenue to $12.4 billion in its fiscal second quarter, indicating some progress in its turnaround strategy. However, the company anticipates a return to sales decline in the current quarter, primarily due to ongoing weakness in the Chinese market.

Nike reported a 1% increase in revenue to $12.4 billion for Q2 2026, surpassing analyst expectations, which led to a rise in its stock price. Despite this positive outcome, the company faces significant challenges, particularly in the Chinese market and with its Converse brand, which experienced a notable decline in sales.

Nike reported a 1% increase in revenue to $12.4 billion, surpassing analyst expectations, but faced significant challenges in China and with its Converse brand, which saw a 30% decline in sales during the fiscal second quarter ending November 30. This weakness overshadowed the positive revenue figures, leading to a drop in shares.

Nike reported a slight increase in quarterly sales, although it continues to face challenges, particularly in China and with its Converse brand, amid ongoing tariff impacts. The company is attempting to navigate a complex market environment while implementing a turnaround strategy.

Jefferies has reiterated its 'Buy' rating for Nike, highlighting the company's progress in innovation as a key factor in this decision. This affirmation comes amid ongoing evaluations of various companies within the market, reflecting Jefferies' confidence in Nike's strategic direction.

Nike reported earnings that exceeded expectations by $0.16, with revenue reaching $12.4 billion, marking a 1% increase. This performance highlights the company's ability to surpass analyst forecasts despite facing challenges in specific markets, particularly in China.