NKE · 10-K · 2026A · Full report

Gross Margin Drivers

NIKE, Inc. · 2026-07-15 · Importance 25 · Surprise 32 · Matches filing data

For fiscal 2026, consolidated gross profit increased 1% to $19.9 billion and gross margin expanded 20 basis points to 42.9%. Gross margin improved approximately 20 basis points from lower warehousing and logistics costs driven by channel mix and approximately 20 basis points from favorable net foreign currency exchange rates and hedges. An additional ~20 basis points of gross margin benefit came from lower other costs. These margin improvements were partially offset by approximately 20 basis points of gross margin decline from Converse and approximately 20 basis points of higher NIKE Brand product costs.

Key facts

• Consolidated gross profit for fiscal 2026 was $19,911 million, an increase of 1% from $19,790 million in fiscal 2025. source
• Gross margin increased approximately 20 basis points due to lower warehousing and logistics costs primarily due to channel mix. source
• Gross margin in fiscal 2026 increased 20 basis points to 42.9%. source
• Higher NIKE Brand product costs decreased consolidated gross margin approximately 20 basis points. source
• Lower other costs increased gross margin approximately 20 basis points. source

Impact estimates