Nike's third-quarter profit fell 35% on tariffs and rising costs.

Sportswear company Nike reported a 35% year-on-year decline in its third-quarter fiscal 2026 profit (ending February 28) to $0,5 billion, despite flat revenue, as higher tariffs and rising costs weighed on the overall result, Worldfootwear.com reports.

Nike's revenue remained at $11,3 billion on a reported basis, but was down 3% on a year-over-year basis on a currency-neutral basis.

Nike's revenue for the quarter was $11 billion (up 1% year-on-year on a reported basis and down 2% excluding currency effects). Sales declines in EMEA and Greater China were partially offset by growth in North America.

Converse shares remain in the red. Converse's third-quarter revenue fell 35% on a reported basis and 37% on a year-over-year basis, reaching $264 million, driven by lower sales in all regions.

In terms of sales channels, Nike's wholesale revenue in the third quarter grew 5% on a reported basis and 1% on a currency-adjusted basis, reaching €6,5 billion, driven by growth in North America. However, Nike's direct revenue fell 4% on a reported basis and 7% on a currency-adjusted basis, reaching €4,5 billion. Nike's online sales volumes declined 9%, and its retail network shrank 5%.

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In the third quarter of the current fiscal year, the company's gross profit fell 130 basis points year-over-year to 40,2% due to higher tariffs in North America. Meanwhile, selling and administrative expenses increased 2% to $4 billion, driven by exit costs and unfavorable currency fluctuations.

Nike ultimately reported net income of $0,5 billion for the third quarter, a 35% decline compared to the same period in fiscal 2025. Diluted earnings per share also declined 35% to $0,35.