Updated
Updated · CNBC · Jun 30
Nike Beats Q4 on $986 Million Tariff Refund as China Sales Drop 12%
Updated
Updated · CNBC · Jun 30

Nike Beats Q4 on $986 Million Tariff Refund as China Sales Drop 12%

3 articles · Updated · CNBC · Jun 30

Summary

  • $10.97 billion in Q4 revenue and 20 cents adjusted EPS both topped estimates, even as Nike shares fell as much as 8% after executives reiterated a cautious near-term outlook.
  • A nearly $986 million tariff refund after the Supreme Court struck down many Trump-era duties lifted gross margin 8.9% and added 52 cents per share; Nike had collected more than $300 million in cash by quarter-end.
  • China revenue fell 12% to $1.30 billion, though still above expectations, while North America sales rose 3% to $4.83 billion but missed analyst targets.
  • Nike kept its prior guidance, expecting earnings to be roughly flat through the first two quarters of fiscal 2027, with management saying consumers remain under pressure globally and sportswear sales fell by a double-digit percentage.

Insights

Will a surprise $1 billion tariff refund be enough to rescue Nike from its worst sales slump in years?
With sales in China plummeting for two years, can Nike's new strategy win back a market it no longer understands?
Nike's World Cup ad crushed its rival online, so why is its stock trading near a 12-year low?