NIKE, Inc.

Total revenue

The company attributes lower revenue to declines in Greater China, EMEA and Converse, partly offset by higher revenue in North America.

“NIKE, Inc. Revenues decreased 5% primarily due to lower revenues in Greater China, Europe, Middle East & Africa ("EMEA") and Converse, partially offset by higher revenues in North America.”

Gross margin

The company recognized a one-time cost-of-sales benefit after it judged recovery of IEEPA tariffs to be probable.

The company describes this as one-time

“This resulted in the recognition of a one-time benefit of $986 million, offsetting the IEEPA tariffs embedded within cost of sales that had been expensed through the income statement throughout fiscal 2026.”

Gross margin

The latest quarter's gross margin increase was primarily attributed to lower warehousing and logistics costs; other factors in the filing partly offset that improvement.

“Gross margin for the first quarter of fiscal 2027 increased 60 basis points to 42.8% primarily due to lower warehousing and logistics costs.”

“Higher other costs, primarily due to third-party royalties, decreasing gross margin approximately 40 basis points;”

“Lower NIKE Brand ASP, decreasing gross margin approximately 30 basis points, primarily due to higher discounts and channel mix, partially offset by strategic pricing;”

Selling and administration

Higher wage-related expense, including severance, and increased demand-creation expense contributed to SG&A pressure; lower administrative costs partly offset overhead costs.

“Operating overhead expense was flat as lower other administrative costs were offset by higher wage-related expense, driven by employee severance costs, and unfavorable changes in foreign currency exchange rates.”

“Demand creation expense increased 1% due to higher sports marketing expense and unfavorable changes in foreign currency exchange rates, partially offset by lower brand marketing expense”

Tax

The annual filing attributes its higher effective tax rate in part to a prior-year one-time deferred tax benefit.

The company describes this as one-time

“primarily due to a prior year one-time, non-cash deferred tax benefit provided by U.S. tax regulations related to foreign currency gains and losses.”

Tax

For the latest quarter, the company attributed the higher effective tax rate to foreign tax audit settlements recognized in the current year.

“Our effective tax rate increased from 21.1% to 22.7% primarily due to foreign tax audit settlements recognized in the current year.”

Other non-cash items

The filings identify working-capital and other balance-sheet movements as a cash drag, including receivables and income taxes payable in the annual discussion, and accrued liabilities, taxes and inventory in the latest-quarter discussion.

“The net change in certain working capital components and other assets and liabilities was primarily driven by an increase in Accounts receivable and a decrease in Income taxes payable.”

“The net change in certain working capital components and other assets and liabilities was primarily driven by decreases in Accrued liabilities and Income taxes payable and an increase in Inventories, partially offset by a decrease in Accounts receivable.”

Capital spending

The filing identifies property, plant and equipment additions as the main driver of investing cash use, but does not explain why capital spending increased.

“In fiscal 2026, cash used by investing activities was $488 million, primarily driven by additions to Property, plant and equipment, partially offset by the net change in short-term investments (including purchases, sales and maturities).”

Share buybacks

The company describes share repurchases as a driver of prior-year financing cash use, while current-year financing cash use was primarily driven by dividends.

“In fiscal 2026, cash used by financing activities was $2,292 million, primarily driven by dividend payments. In fiscal 2025, cash used by financing activities was $5,820 million, primarily driven by share repurchases, dividend payments and a $1 billion bond repayment.”

Borrowing and repayments

The company identifies a prior-year bond repayment as one of the drivers of financing cash use; the filing does not separately quantify its effect over this rolling-year window.

“In fiscal 2026, cash used by financing activities was $2,292 million, primarily driven by dividend payments. In fiscal 2025, cash used by financing activities was $5,820 million, primarily driven by share repurchases, dividend payments and a $1 billion bond repayment.”