Nike shares slide as China outlook overshadows better-than-expected Q3

(Sharecast News) - Sportswear giant Nike posted better‑than‑expected third‑quarter sales on Tuesday but warned that sales were likely to continue to decline throughout the rest of 2026, principally due to an expected 20% decline in China. Nike said Q3 revenues came in at $11.28bn, ahead of consensus estimates of $11.24bn but flat year‑on‑year, while reported net income was $520m, or $0.35 per share, also ahead of estimates but down 35% from $794m, or $0.54 per share, a year earlier. Nike also said gross margins contracted for a sixth consecutive quarter, narrowing by 130 basis points to 40.2%, which it said was largely driven by tariffs.

However, Nike expects sales in China to fall roughly 20% next quarter. Greater China is the company's third‑largest market, accounting for roughly 15% of annual revenue, but has struggled in recent quarters amid weaker product assortments and market‑share losses to local rivals.

The Oregon-based firm's results, which capture much of the key holiday period, continued to show steady growth in North America, with revenue up 3% to $5.03bn, but that was still just shy of Wall Street expectations of $5.04bn.

Wholesale revenue rose 5% to $6.5bn, while, direct sales dropped 4% to $4.5bn.

As of 0955 BST, Nike shares were 9.07% lower in pre-market action at $48.03 each.





Reporting by Iain Gilbert at Sharecast.com