Earnings Call Intelligence Subscribe
Home › Call Sheets › NKE › Q2'26
Call sheet · Q2'26

NIKE (NKE)

Q2'26 earnings call · held December 18, 2025 · compared with the Q1'26 call · management-credibility review
9/12
Disclosure score
1 high, 4 medium, 1 low flags
Financial quality
Bottom line
The sleeper story is China's inventory writedown cycle - unplanned obsolescence charges not contemplated 90 days ago reveal Nike's biggest growth market is in a margin-destroying promotional spiral where discounting begets more discounting. The obvious headline of modest revenue growth masks this structural issue. The binding constraint isn't demand - it's pricing power. North America's tariff math shows they recovered 190 basis points despite massive cost inflation, but they're hitting consumer price elasticity limits. Elliott admitted: 'We've become a lifestyle brand competing on price in China.' My view changes if they quantify the China turnaround investment and timeline - until then, it's an open-ended margin drain disguised as a growth opportunity.

The 30-second version

  • China inventory writedowns signal deeper structural issues
  • Tariff math reveals Nike's pricing power ceiling
  • Sport offense reorganization creating coordination costs

What changed this quarter

MetricQ1'26Q2'26Change
Total Revenue12.35B (flat YoY)12.35B (+1% reported, flat currency-neutral)Marginal improvement
Gross Margin42.2% (-320 bps)40.6% (-300 bps)Continued compression
EPS$0.49$0.53+8% but still depressed
NIKE Direct-5%-9%Accelerating decline
Wholesale+5%+8%+300 bps acceleration
North America Revenue+4%+9%+500 bps acceleration
Greater China Revenue-10%-16%Accelerating deterioration
Running Growth20%+20%+Sustained momentum
Operating Cash FlowNot disclosedNot disclosedNo visibility
Inventory-2%-3%Slight improvement

Accountability tracked

7 new promises made5 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full NKE Q2'26 report Subscribe
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.