Nike: beat, but China warning
Nike beat Q3 estimates but issued weak Q4 guidance tied to China, and the guidance hit shares as investors worried about regional demand (x.com). That kind of China‑led guidance risk is a reminder that multinational earnings can quickly transmit to emerging‑market suppliers and retail channels (x.com).
NIKE reported fiscal Q3 revenue of $11.3 billion and diluted EPS of $0.35, with gross margin down 130 basis points to 40.2% and inventories of $7.5 billion as of Feb. 28, 2026. (about.nike.com(about.nike.com)) (about.nike.com) Greater China revenue fell 7% year‑over‑year to $1.62 billion in the quarter, marking the seventh consecutive quarterly decline in that region. (cnbc.com(cnbc.com)) (cnbc.com) On the earnings call CFO Matthew Friend guided fiscal Q4 sales to fall between 2% and 4% and said the company expects Greater China revenue to drop about 20% in the current quarter. (cnbc.com(cnbc.com)) (cnbc.com) Nike has flagged tariffs as a major headwind — management now forecasts roughly $1.5 billion of tariff costs for fiscal 2026 and has repeatedly linked tariff pressure to the gross‑margin compression the company is experiencing. (cnbc.com(cnbc.com)) (about.nike.com(about.nike.com)) (cnbc.com) Markets punished the weaker outlook: NIKE shares slid more than 9% in extended trading after the guidance, with overnight quotes showing roughly a 9.3% drop. (finance.yahoo.com(finance.yahoo.com)) (finance.yahoo.com) Greater China represents roughly 15% of Nike’s revenue, so management’s ~20% guidance cut for that market implies about a 3 percentage‑point reduction to companywide revenue if realized (15% × 20% ≈ 3%). (sherwood.news(sherwood.news)) (cnbc.com(cnbc.com)) (sherwood.news)
