The sports apparel giant, Nike, just did it with its latest earnings call and outperformed Wall Street analysts’ forecasts, possibly signalling the return of the world-renowned sports brand, back to its former glory days.
Shares rose by over 4% in the aftermarket hours signalling investors’ optimisms, as Nike toppled both the EPS and Revenue targets in their first fiscal quarter of 2026, reporting an earnings per share of $0.49 (vs $0.27 expectation), an impressive 81% increase and $11.7bn of total revenue (vs $10.79bn expectation), surpassing estimates by 6.8% and reflected a 1% increase on a year-on-year basis.
Wholesale revenues saw a 7% increase, yet net income declined significantly, by over 31%, as tariff impact squeezed the company’s margins and as sales in China continued to weaken. This comes as no surprise as Chinese domestic consumption continues to be lacklustre, a persistent trend that the Chinese government is still struggling with.
Furthermore, the management team pledged to refocus its product development and marketing tactics to favour sports, and rebuild relationships with retailers, seeking to close the gap and counter the intense competition with is rivals, On and Hoka. Nike shoes are returning to Amazon.com noted the CEO, making a comeback after a 6 year absence and their sneakers will be prioritized and displayed in Footlocker stores.
Women’s business segment also hit an important milestone earlier this month as Nike announced a collaboration with Kim Kardashian, a move deemed as a “solid strategy” by analysts, as the company strives to capture more market share from the women’s fitness market.
Technical Analysis
NKE Chart – Nike seeks to extend rebound from yearly lows after EPS and revenue beats
Resistance: 80.00 (R1), 88.00 (R2), 95.00 (R3)
Support: 69.00 (S1), 59.50 (S2), 52.00 (S3)