Converse sales drop drives Nike Q3 decline
NIKE reported third quarter fiscal 2026 revenues of $11.3 billion for the period ended February 28, 2026, unchanged on a reported basis and down 3 percent on a currency-neutral basis.
Wholesale revenues rose 5 percent to $6.5 billion, while NIKE Direct revenues fell 4 percent to $4.5 billion. Converse sales declined 35 percent to $264 million.
Gross margin fell 130 basis points to 40.2 percent. Selling and administrative expenses rose 2 percent to $4.0 billion, and operating overhead increased 3 percent to $2.9 billion. Net income dropped 35 percent to $0.5 billion, with diluted earnings per share of $0.35.
Elliott Hill, president and CEO, said the company is taking steps to improve business quality, noting progress varies across its portfolio. Matthew Friend, executive vice president and CFO, added that ongoing initiatives are expected to influence results through the rest of the calendar year while supporting long-term profitable growth.
