Nike IncNKE
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Flat revenue and declining gross margin in fiscal Q3, with margin not returning to growth until fiscal Q2 2027.
Impact on stocks 1
Consumer Discretionary
Nike IncNike shares fell 36% in the first half of 2026 as flat revenue, tariff-driven margin pressure, and the Iran conflict weighed on the stock. The footwear giant reported flat revenue of $11.3 billion in its fiscal third quarter, with gross margin declining 130 basis points to 40.2%, and warned that gross margin would not return to growth until the second quarter of fiscal 2027. The stock plunged 15.5% on April 1 following the report, and earlier declines in March were exacerbated by the war in Iran, which lifted inflation and threatened consumer spending. Fourth-quarter results released on June 30 showed a 1% revenue decline, but the stock recovered the next day as investors anticipated a return to margin expansion in the new fiscal year.
Nike IncFlat revenue and declining gross margin in fiscal Q3, with margin not returning to growth until fiscal Q2 2027.