Nike, -35% net profit in the quarter. Disappointing estimates for 2026

Nike's relaunch is taking longer than hoped due to a combination of both internal and external factors. This was emphasised by the CEO of the sportswear group Elliott Hill when presenting the accounts for the third quarter (ended February) and the directions for the coming months. The group estimates a 'low single digit' decline in sales until the end of 2026 and estimates a 2-4% decline in the current quarter, which is higher than analysts' forecasts. The estimates include a 20% drop in sales in China after a -7% drop in the third quarter. In the third quarter Nike reported revenues of $11.27 billion (flat on the previous year) and net profit down 35% to $520 million.

In after-hours trading in New York after the release of the data, the stock lost 9.1 per cent at 8 p.m. From the beginning of the year until Tuesday's close, the performance was already down 17 per cent.

For the current quarter, revenues are expected to decline between 2% and 4%, while for the rest of the calendar year the contraction is expected to be in the low single digits, management told investors during the results conference call on Tuesday evening. In contrast, analysts surveyed by Bloomberg were forecasting growth of 2% in the quarter and a stronger acceleration in subsequent periods.

"This is a complex job and some components are taking longer than expected," said Nike CEO Elliott Hill, adding: "But the direction is clear, the urgency is real and the foundations are getting stronger.

The sportswear group, committed to regaining market leadership after a prolonged decline in sales, is facing headwinds on a global scale. Nike is experiencing high inventory levels in Europe and the Middle East and trade disruptions related to the ongoing conflict, factors that could generate more operational volatility. Critical issues, along with weakness in Greater China and other areas, have overshadowed solid results in North America.