Nike beats Q4 profit, but the market remains unconvinced by the recovery story
📊 Nike reported Q4 EPS of $0.72, well above expectations. However, much of the improvement came from a one-time tariff refund, which boosted gross margin sharply but did not fully reflect stronger core business momentum.
🧩 Revenue remains the key concern. Q4 sales came in at around $11 billion, down 1% on a reported basis and 4% on a currency-neutral basis, while full-year FY2026 revenue was nearly flat at $46.4 billion.
🌏 Greater China remains a major weak spot, with full-year revenue down 11%, while NIKE Direct fell 7% in Q4. This suggests direct consumer demand and the China market have yet to show a clear recovery.
📉 The negative stock reaction after the report shows investors are focused more on growth quality than the headline EPS beat. Nike is making progress on restructuring and cost control, but the turnaround under CEO Elliott Hill still needs stronger proof from real sales growth.
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