Nike's fiscal second-quarter results for 2026, ending November 30, showed a 1% year-over-year revenue increase, while net income dropped by more than 30%. CEO Elliott Hill described the quarter as the middle innings of the company's comeback.
Wholesale revenue, the largest segment, rose 8% year over year. Nike Direct revenue fell 8%. Tariffs and high costs for U.S. consumers are pressuring results, potentially cutting into wholesale gains and amplifying Direct losses.
North American revenue grew 9%, but sales in all other regions declined. European revenue sank 1%, Chinese revenue fell 16%, and Asia Pacific & Latin American revenue dropped 4%. International sales represent over half of Nike's total revenue.
Apparel was the only segment with meaningful growth, up 4% year over year. Equipment and footwear sales were roughly flat. Footwear provides more than 60% of total revenue. Apparel growth decelerated from 7% in the first half of fiscal 2026 to 4% in the second quarter.
Nike's stock price has fallen by more than 50% over the past five years. At the current share price, the dividend yield is 2.5%. The company has been losing market share for years, a trend likely to continue.
The Motley Fool Stock Advisor analyst team identified 10 best stocks for investors to buy now, and Nike was not among them. The team noted that Stock Advisor's total average return is 968%, compared to 197% for the S&P 500.