Q: What is Nike(NKE) 2026 Earnings Summary?
**Bullish Points:**
1. NIKE, Inc. revenues for the first quarter of fiscal 2026 were $11.7 billion, a 1% increase compared to $11.6 billion for the first quarter of fiscal 2025.
2. NIKE Brand revenues increased 2% on a reported basis.
3. Total selling and administrative expense decreased by 1% to $4,016 million.
4. Demand creation expense decreased by 3% to $1,188 million.
5. Cash used by investing activities was $59 million, a decrease from $166 million in the first quarter of fiscal 2025.
6. Cash used by financing activities was $598 million, a decrease from $1,622 million in the first quarter of fiscal 2025.
7. NIKE repurchased 1.8 million shares of Class B Common Stock for $123 million under the four-year, $18 billion share repurchase plan.
**Bearish Points:**
1. NIKE Direct revenues were $4.5 billion, a decrease from $4.7 billion in the first quarter of fiscal 2025.
2. Net income for the first quarter of fiscal 2026 was $727 million, a decrease from $1,051 million in the first quarter of fiscal 2025.
3. Gross margin for the first quarter of fiscal 2026 decreased by 320 basis points to 42.2%.
4. Inventories as of August 31, 2025, were $8.1 billion, an increase of 8% compared to May 31, 2025.
5. Basic and diluted earnings per common share were $0.49, a decrease from $0.70 in the first quarter of fiscal 2025.
6. Long-term debt was $7,996 million as of August 31, 2025, compared to $7,961 million as of May 31, 2025.
7. Cash provided by operations was $222 million, a decrease from $394 million in the first quarter of fiscal 2025.
8. The effective tax rate for the first quarter of fiscal 2026 was 21.1%, compared to 19.6% for the first quarter of fiscal 2025.
**Summary:**
The financial report for Nike (NKE) presents a mixed outlook. On the positive side, the company saw a slight increase in overall revenues and a reduction in certain expenses, including demand creation and financing activities. Additionally, Nike continued its share repurchase program, which can be seen as a sign of confidence in the company's future.
However, there are several areas of concern. Nike Direct revenues and net income both saw declines, and the gross margin decreased significantly. Inventories increased, which could indicate potential issues with product sell-through. Earnings per share also dropped, and long-term debt saw a slight increase. The effective tax rate rose, reducing the benefits from stock-based compensation.
For more information, you can read the original text of Nike(NKE)'s financial report.
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