Nike's Q4 Revenue Falls Again as Converse Collapses 32%

Quick Facts

Nike Q4 net sales fell to $10.97 billion, down 4% on a currency-neutral basis, with full-year revenue at $46.4 billion.
Converse revenue dropped 32% in Q4 to $244 million, declining across all territories, prompting sale speculation.
A $986 million tariff refund inflated gross margin to 49.2% and pushed net income up 407%, masking adjusted EPS of just 20 cents.

Nike reported fourth-quarter fiscal 2026 results on June 30, and the headline numbers tell two different stories. Strip away a $986 million anticipated refund of duties collected under the International Emergency Economic Powers Act, and the picture is far less flattering.

Net sales came in at $10.97 billion, down 1% on a reported basis and down 4% on a currency-neutral basis. Full-year revenues were $46.4 billion, flat year-over-year on a reported basis but down 2% currency-neutral. Adjusted earnings per share were 20 cents, beating Wall Street’s 13-cent estimate, but well below the tariff-boosted reported figure of 72 cents. Nike shares still dropped as much as 8% in extended trading before recovering much of that loss.

CEO Elliott Hill acknowledged the shortfall directly. “Overall, the results aren’t there yet. We know we’re not living up to our full potential, particularly in Nike sportswear and Jordan streetwear, where sell through remains challenged, impacting both current discounting and future order books,” he said.

Wholesale Gains, Direct Loses Ground

The channel mix shifted sharply. Nike Direct fell 9% in Q4, with Nike Digital down 12% and Nike stores down 7%. Wholesale grew 4% for the full fiscal year, with North America wholesale up 10% in Q4 alone. North America Q4 revenue grew 3% overall.

Greater China remained a problem. Q4 revenue there fell 17%, with Nike Direct down 14% in the region. Outgoing CFO Matthew Friend said the operating environment grew “more challenging” as the quarter progressed and warned that Nike does not expect the “volatile” macro environment to “improve meaningfully over the next 6 months.”

One bright spot: Nike’s running segment posted five consecutive quarters of double-digit growth, adding approximately $1 billion to the business.

Converse Becomes a Liability

Converse posted $244 million in Q4 revenue, a 32% drop on a reported basis and 34% currency-neutral. The decline hit every territory. Retail Dive reported that GlobalData Managing Director Neil Saunders called the result “nothing short of a disaster,” saying it raises the question of “whether Nike actually has the bandwidth and will to fix the brand.”

BNP Paribas senior analyst Laurent Vasilescu has been more direct about the math. He pointed to a 44% year-over-year decline in demand creation spending for Converse. “We’ve never seen a 44 percent decline in demand creation for a brand,” he wrote, adding that Nike may be “evaluating strategic alternatives for Converse.”

Potential buyers have surfaced. Former pro footballer David Beckham and Authentic Brands Group are reportedly considering an acquisition. Authentic Brands applied the same model to Reebok after acquiring it from Adidas, using licensing and operating partners to reactivate the brand.

Hill pushed back on sale talk during the Q4 call, saying Nike now has a clear view of where Converse fits, centering on the Chuck Taylor and Jack Purcell franchises and a lifestyle-focused strategy. He announced that NBA star Shai Gilgeous-Alexander is joining the Nike basketball family, which Hill framed as freeing Converse to focus on its core creative consumer.

What Comes Next

Earnings per share have fallen sharply, from $3.95 in fiscal 2024 to $2.16 in fiscal 2025. Analyst consensus projects a further decline to around $1.50 in fiscal 2026, followed by a gradual recovery. Hill pointed to the 2026 FIFA World Cup as a sustained marketing platform rather than a one-time activation, framing it as a way to rebuild brand momentum across geographies.

For retail operators watching Nike’s wholesale recovery, the North America numbers offer some signal. But with direct channels contracting, China struggling, and Converse bleeding revenue, the turnaround remains incomplete. The tariff refund bought time. It did not buy results.