Nike (NIKE, Inc.) — research brief

Educational notes for the BMC. Not affiliated with NIKE, Inc. Facts are labeled. Public company (NYSE: NKE) — cite SEC / IR only for financials. Do not invent Membership counts (Nike does not disclose a paid Membership population; Membership is free).

FACT — primary

Financials (FY2026 ended May 31, 2026)

Total revenue $46.4B, flat reported / −2% currency-neutral. Source: NIKE newsroom + IR FY2026 Q4/FY results (Jun 30, 2026).
NIKE Brand $45.2B (+1% reported / −1% CN). Wholesale $27.5B (+6% / +4% CN). NIKE Direct $17.7B (−6% / −8% CN), driven by NIKE Brand Digital −12% and NIKE-owned stores −4%.
Converse $1.2B (−31% reported / −32% CN).
Gross margin 42.9% (+20 bps). SG&A $16.1B flat — Demand creation $4.8B (+1%), Operating overhead $11.4B flat.
Net income $3.1B (−3%); diluted EPS $2.10 (−3%).
Balance sheet color: Inventories $7.5B (flat); cash + short-term investments $9.0B. FY26 shareholder returns ~$2.5B (dividends $2.4B; repurchases $123M).
Segment table (SEC): NIKE Brand wholesale $27.453B + DTC $17.720B; Converse wholesale $605M + DTC $477M; total NIKE, Inc. revenues $46.398B.

Channel / operations (FY2026 Form 10-K)

Model: design/develop/market/sell athletic footwear, apparel, equipment; sell via NIKE Direct (owned stores + digital / “NIKE Brand Digital”) and wholesale (distributors, licensees, sales reps nearly worldwide). Nearly all products manufactured by independent contract manufacturers outside the U.S.
U.S. ~44% of total revenues; non-U.S. ~56%. Top 3 U.S. customers ≈29% of U.S. sales; top 3 non-U.S. ≈16% of non-U.S. sales. No customer ≥10% of consolidated revenue.
U.S. retail stores: 212 NIKE factory, 75 NIKE in-line (incl. employee-only), 60 Converse → 347 total. Non-U.S.: 537 factory, 50 in-line, 54 Converse → 641 total. Digital commerce in 40+ countries.
Employees: ~73,000 worldwide as of May 31, 2026 (incl. retail/part-time).
Footwear CMs: Vietnam ~52%, Indonesia ~27%, China ~16% of NIKE Brand footwear; 95 footwear factories / 15 CMs. Apparel: Vietnam ~34%, Cambodia ~15%, China ~12%; 321 apparel factories / 64 CMs.
Brands: NIKE, Jordan (reported inside NIKE Brand geographies), Converse (standalone segment). Interactive services: sport events/activations, fitness apps, content, in-store digital features.

Nike Membership / apps (nike.com — free DTC relationship layer)

Nike Membership is free (“100% yes”). Benefits include free shipping on orders $50+, 60-day Wear Test (excl. Clearance), receipt-less returns, Member Experiences, Nike Experts, plus apps Nike Run Club, Nike Training Club, and SNKRS.
Nike App: once in the App, you are a Member — personalized shopping, Member product access, birthday rewards, free shipping $50+.
SNKRS: launch notifications, exclusive drops, in-store pickup options for secured pairs.
Membership is not a paid subscription in these sources — do not invent a Membership fee or Member count.

SECONDARY

Press quotes from CEO Elliott Hill / CFO Matthew Friend on “Sport Offense,” marketplace elevation, and structural actions — use for narrative color only; numbers above stay FACT from the release tables.
Market-cap / Class A+B non-affiliate values in the 10-K cover page are point-in-time (Nov 28, 2025) — optional context, not a “valuation” teaching metric.

INFERENCE (labeled on the canvas)

Wholesale remains the larger revenue pipe vs NIKE Direct in FY26; Membership / App / SNKRS are the relationship and digital conversion layer on Direct, not a separate GAAP revenue line.
Free Membership shipping / Wear Test / returns are Direct cost drivers (demand creation + overhead), not a Membership P&L disclosure.
Athlete endorsements and sports marketing sit inside Demand creation ($4.8B FY26) — Nike does not break out “endorsement $” alone in the earnings bullets we cite.

Not found — do not invent

Paid Nike Membership subscriber count, Nike App MAU, SNKRS conversion rates, or Membership-attributable revenue.
Per-SKU ASP ladders beyond list prices on nike.com (which vary constantly) — teach channel mix and Membership benefits instead.

Teaching arc

Brand + wholesale + Nike App / Membership DTC — wholesale still carries most NIKE Brand dollars; NIKE Direct (Nike.com, Nike App, SNKRS, owned stores) is the Membership-powered consumer relationship; Converse is a separate brand segment; nearly all making is outsourced to contract manufacturers.

Sources

# Nike (NIKE, Inc.) — research brief Educational notes for the BMC. **Not affiliated with NIKE, Inc.** Facts are labeled. Public company (NYSE: NKE) — cite SEC / IR only for financials. Do not invent Membership counts (Nike does not disclose a paid Membership population; Membership is free). ## FACT — primary ### Financials (FY2026 ended May 31, 2026) - **Total revenue** $46.4B, flat reported / −2% currency-neutral. Source: NIKE newsroom + IR FY2026 Q4/FY results (Jun 30, 2026). - **NIKE Brand** $45.2B (+1% reported / −1% CN). **Wholesale** $27.5B (+6% / +4% CN). **NIKE Direct** $17.7B (−6% / −8% CN), driven by NIKE Brand Digital −12% and NIKE-owned stores −4%. - **Converse** $1.2B (−31% reported / −32% CN). - **Gross margin** 42.9% (+20 bps). **SG&A** $16.1B flat — Demand creation $4.8B (+1%), Operating overhead $11.4B flat. - **Net income** $3.1B (−3%); diluted EPS $2.10 (−3%). - **Balance sheet color:** Inventories $7.5B (flat); cash + short-term investments $9.0B. FY26 shareholder returns ~$2.5B (dividends $2.4B; repurchases $123M). - Segment table (SEC): NIKE Brand wholesale $27.453B + DTC $17.720B; Converse wholesale $605M + DTC $477M; total NIKE, Inc. revenues $46.398B. ### Channel / operations (FY2026 Form 10-K) - Model: design/develop/market/sell athletic footwear, apparel, equipment; sell via **NIKE Direct** (owned stores + digital / “NIKE Brand Digital”) and **wholesale** (distributors, licensees, sales reps nearly worldwide). Nearly all products manufactured by **independent contract manufacturers** outside the U.S. - **U.S. ~44%** of total revenues; **non-U.S. ~56%**. Top 3 U.S. customers ≈29% of U.S. sales; top 3 non-U.S. ≈16% of non-U.S. sales. No customer ≥10% of consolidated revenue. - **U.S. retail stores:** 212 NIKE factory, 75 NIKE in-line (incl. employee-only), 60 Converse → **347 total**. **Non-U.S.:** 537 factory, 50 in-line, 54 Converse → **641 total**. Digital commerce in **40+ countries**. - **Employees:** ~**73,000** worldwide as of May 31, 2026 (incl. retail/part-time). - Footwear CMs: Vietnam ~52%, Indonesia ~27%, China ~16% of NIKE Brand footwear; 95 footwear factories / 15 CMs. Apparel: Vietnam ~34%, Cambodia ~15%, China ~12%; 321 apparel factories / 64 CMs. - Brands: NIKE, **Jordan** (reported inside NIKE Brand geographies), **Converse** (standalone segment). Interactive services: sport events/activations, fitness apps, content, in-store digital features. ### Nike Membership / apps (nike.com — free DTC relationship layer) - **Nike Membership is free** (“100% yes”). Benefits include free shipping on orders **$50+**, **60-day Wear Test** (excl. Clearance), **receipt-less returns**, Member Experiences, Nike Experts, plus apps **Nike Run Club**, **Nike Training Club**, and **SNKRS**. - Nike App: once in the App, you are a Member — personalized shopping, Member product access, birthday rewards, free shipping $50+. - SNKRS: launch notifications, exclusive drops, in-store pickup options for secured pairs. - Membership is **not** a paid subscription in these sources — do not invent a Membership fee or Member count. ## SECONDARY - Press quotes from CEO Elliott Hill / CFO Matthew Friend on “Sport Offense,” marketplace elevation, and structural actions — use for narrative color only; numbers above stay FACT from the release tables. - Market-cap / Class A+B non-affiliate values in the 10-K cover page are point-in-time (Nov 28, 2025) — optional context, not a “valuation” teaching metric. ## INFERENCE (labeled on the canvas) - Wholesale remains the larger revenue pipe vs NIKE Direct in FY26; Membership / App / SNKRS are the **relationship and digital conversion layer** on Direct, not a separate GAAP revenue line. - Free Membership shipping / Wear Test / returns are Direct cost drivers (demand creation + overhead), not a Membership P&L disclosure. - Athlete endorsements and sports marketing sit inside Demand creation ($4.8B FY26) — Nike does not break out “endorsement $” alone in the earnings bullets we cite. ## Not found — do not invent - Paid Nike Membership subscriber count, Nike App MAU, SNKRS conversion rates, or Membership-attributable revenue. - Per-SKU ASP ladders beyond list prices on nike.com (which vary constantly) — teach channel mix and Membership benefits instead. ## Teaching arc **Brand + wholesale + Nike App / Membership DTC** — wholesale still carries most NIKE Brand dollars; NIKE Direct (Nike.com, Nike App, SNKRS, owned stores) is the Membership-powered consumer relationship; Converse is a separate brand segment; nearly all making is outsourced to contract manufacturers. ## Sources - https://about.nike.com/en/newsroom/releases/nike-inc-reports-fiscal-2026-fourth-quarter-and-full-year-results - https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2026/NIKE-Inc--Reports-Fiscal-2026-Fourth-Quarter-and-Full-Year-Results/default.aspx - https://www.sec.gov/Archives/edgar/data/320187/000032018726000088/nke-20260531.htm - https://www.nike.com/membership - https://www.nike.com/nike-app - https://www.nike.com/snkrs-app