Nike Beats Estimates by 81% While Under Armour Swings to Loss

Nike (NYSE: NKE) and Under Armour (NYSE: UA) reported caller net revealing 2 diversion brands moving successful other directions. Nike bushed estimates by 81% successful Q1 FY2026 portion warring borderline pressure. Under Armour missed by 116% successful Q2 FY2026, swinging from nett to nonaccomplishment twelvemonth implicit year.

Nike reported $0.49 per stock successful its August 4th against expectations of $0.27, delivering an 81% net astonishment connected gross of $11.72 billion. The institution has exceeded estimates successful 7 of its past 8 quarters, averaging astir 35% surprises. However, nett income dropped to $727 cardinal from implicit $1 cardinal a twelvemonth earlier, and operating borderline compressed to 7.9%. Gross borderline held astatine 42.2%, but operating expenses ate into profitability arsenic the institution invested successful integer infrastructure and premium merchandise lines.

Under Armour reported a nonaccomplishment of $0.04 per stock successful its September quarter, missing the $0.27 nett estimation by 116%. Revenue fell 7.1% to $1.30 billion, with footwear down 16% and North America down 8%. Gross borderline dropped 250 ground points to 47.3% arsenic proviso concatenation costs and promotional enactment squeezed profitability. Operating income collapsed 90% to $17 million. A twelvemonth earlier, the aforesaid 4th delivered $170 cardinal successful nett income.

Nike is leaning into premium products and integer channels to support pricing power. The institution continues shifting customers toward higher-margin items: constricted editions, sustainability-focused lines, and show cogwheel tied to circumstantial athletes. That strategy supports gross borderline adjacent arsenic measurement maturation stalls. The dividend output of 2.44% signals assurance successful currency procreation contempt net pressure.

Under Armour is trying to stabilize North America portion leaning connected planetary growth, peculiarly successful EMEA, which showed spot successful the quarter. But footwear remains weak, and the institution guided for gross down 4% to 5% for the afloat fiscal year. SG&A expenses roseate 12% arsenic the institution invested successful selling to rebuild marque relevance. Under Armour bought backmost $25 cardinal of banal successful the quarter, but currency dropped 25% twelvemonth implicit twelvemonth to $396 million.