A Major Index Shakeup
In September 2026, the market witnessed a significant shift as Nike was removed from the S&P 100 index after nearly two decades of inclusion. While the brand remains a component of the broader S&P 500, the departure from the elite 100-company index signaled deeper concerns among investors and analysts regarding the company's trajectory.
Fiscal 2026: By the Numbers
Financial reports from fiscal 2026 paint a picture of a company facing regional headwinds. Total revenues for the Nike Brand reached $45.2 billion, a modest 1% increase on a reported basis. However, performance varied drastically by region. Growth in North America was partially offset by significant declines in Greater China and the EMEA (Europe, Middle East, and Africa) markets.
- North American growth served as a primary buffer against global declines.
- Wholesale revenues reached $27.5 billion, showing a 6% reported increase.
- Gross margins saw a slight improvement, up 20 basis points to 42.9%.
- Selling and administrative expenses remained flat at $16.1 billion.
Navigating the Future
The road ahead remains challenging. Following its October 2026 earnings release, Nike projected a high-single-digit percentage decline in fiscal 2027 revenue. Analysts suggest that while wholesale shipments and margin management are being prioritized, these steps alone may not be sufficient to signal a full-scale turnaround. The brand is also attempting to modernize its reach, exemplified by collaborations like the partnership with Skims, which saw a positive short-term reaction from the market.
Early cost savings, wholesale shipments or a single quarter of better margins are not enough to prove a recovery.
— Sajin Kabeer, Meaningful Blog