In its latest fiscal quarter ending February 28, 2026, NIKE reported flat revenue on a reported basis but a 3% currency-neutral decline, largely driven by weakness in Greater China and Converse as these segments undergo strategic resets. Gross margins compressed by 130 basis points due mainly to higher product costs from tariffs in North America. The company is actively reducing inventory levels through increased markdowns and elevating demand creation spend to foster long-term growth despite near-term profit pressures. North America leads progress on efficiency initiatives, while Greater China and Converse remain challenged, expected to continue through fiscal 2027. NIKE’s strong brand equity and diversified distribution model underpin a durable moat amid these headwinds.