Nike's profit and gross margins were buoyed by a tariff refund

Nike's stock is down more than 35% so far this year.

Nike's quarterly results on Tuesday topped Wall Street's estimates - but the profit beat came in large part due to a tariff refund, and the company still faces sales pressure.

Shares of Nike $(NKE)$ slipped 2.4% in after hours trade, continuing its drift further towars decade-plus lows.

Nike reported fiscal fourth-quarter revenue of $10.97 billion. That was down 1% year over year but better than analysts' estimates for $10.85 billion.

However, tariff refunds helped profits and margins. Nike earned 72 cents a share during the quarter, well above Wall Street's estimates for 12 cents.

The sneaker giant said Tuesday's quarterly earnings per share figure included a 52-cent "benefit" tied to the expected recovery of President Donald Trump's emergency-powers tariffs, which the Supreme Court struck down earlier this year. That expected tariff refund also boosted Nike's gross margins.

Nike last week said its results would get a lift from tariff refunds that were "not contemplated in the company's previously provided guidance."

CEO Elliott Hill said in a statement on Tuesday that the company continued to face "top-line headwinds," but said he was encouraged by sales gains in products geared toward athletic performance.

Nike's sales to retailers rose 4% for the fourth quarter, which runs through May. Sales at its own physical and online stores fell 7%.

The stock has fallen more than 35% so far this year, as Wall Street grows more worried about the progress of turnaround efforts under Hill. During regular trading hours on Tuesday, Nike's stock was trading at around $41, and was at a roughly 12-year low.

Nike has struggled with weaker demand from cautious consumers and tougher competition from other sneaker brands. In March, management said it expects sales to fall this year and acknowledged that efforts to reignite demand had taken longer than expected.

At that time, management said business had gotten better in North America, helped by gains in soccer and running shoes. But some analysts have said Nike's newer products - part of its efforts to focus on the needs of athletes - haven't caught on with consumers. Nike's digital business and its stores in China have struggled, and it has tried to refashion those segments into destinations for higher-priced fare, rather than discounting.

Nike's results also arrived as Wall Street tries to gauge the impact of the World Cup on demand for athletic gear. Research from LSEG last week showed that since the World Cup started, 28% of Nike's merchandise related the tournament had sold out. That was better than 7% for rival Adidas (ADDYY).

David Denton is due to become Nike's chief financial officer on Aug. 17, according to an announcement from last week. Matthew Friend, the current CFO, will leave that role then but stay with the company through Sept. 4 to help with the transition.

Raymond James analyst Rick Patel said in a note last week that the appointment of Denton, who has been serving as the CFO of Pfizer $(PFE)$ and was the CFO of Lowe's $(LOW)$ before that, was a mixed development.

"Positively, incoming CFO David Denton has managed large and complex companies that were striving towards their own operational improvement (Pfizer and Lowe's)," he said. "But it also raises questions about how [Nike's] current turnaround is tracking into this fall's pivotal Investor Day."

-Bill Peters

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June 30, 2026 16:49 ET (20:49 GMT)

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