Nike Q4 EPS Tops Estimates with $11B Sales; China EBIT Falls to $243M
NKE•Nike reported fiscal Q4 adjusted EPS of 72 cents, topping estimates, and generated $11.0 billion in revenue with a 49.2% gross margin, while greater China EBIT slid to $243 million on steep sales declines. CFO Matt Friend will depart, to be replaced by Pfizer’s finance chief, as CEO Elliott Hill extends the turnaround into Spring 2027.
1. Q4 Financial Results
Nike’s fiscal fourth quarter delivered adjusted earnings per share of $0.72, exceeding consensus, on $11.0 billion in sales. The quarter also featured a 49.2% gross margin and inventory levels of $7.5 billion as the company continued to rebalance its product portfolio.
2. Greater China Challenges
In greater China, Nike saw rapid sales declines that drove EBIT down to $243 million, marking a collapse of profitability in what was once a key growth region. The slowdown underscores intensifying competition and shifting consumer demand in the market.
3. Leadership Changes
Longtime CFO Matt Friend announced his departure after three years, and Nike has named Pfizer’s finance chief as his successor. The move is part of broader management shifts under CEO Elliott Hill aimed at strengthening the company’s financial leadership.
4. Turnaround and Future Plans
CEO Elliott Hill acknowledges a slower-than-expected recovery and is focusing on new product launches in Spring 2027 to leverage Nike’s global sports partnerships. The strategy aims to reignite growth by enhancing connection with athletes and improving execution across markets.
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