Nike Crushes Estimates by 81% as Under Armour Returns to Losses

Nike reported quarterly results that substantially exceeded Wall Street expectations, delivering an earnings beat of roughly 81% versus consensus. The footwear and apparel giant cited resilient consumer demand, strength in its direct-to-consumer channels and solid performance in North America and key international markets. Nike’s digital sales and updated product assortments helped offset ongoing industry-wide pressures, supporting margins and reassuring investors about the company’s recovery strategy.

By contrast, Under Armour swung to a quarterly loss as the athletic apparel maker contended with softer wholesale orders, inventory write-downs and elevated operating expenses. The shift to a loss reflects a tougher near-term environment for the company’s brand repositioning and cost-reduction initiatives. Management attributed the shortfall to a combination of weaker retail demand in certain regions and higher-than-expected markdowns as it worked to clear excess inventory.

Analysts noted the divergence underscores the bifurcation within the athletic apparel space: larger incumbents with diversified distribution and strong direct-to-consumer footprints have been able to navigate supply-chain disruptions and shifting consumer preferences more effectively than smaller or heavily wholesale-dependent peers. Nike’s outperformance may give it more flexibility to invest in innovation, marketing and digital channels, while Under Armour faces a more urgent need to stabilize margins and accelerate its turnaround plan.

Investors will be watching upcoming guidance and commentary from both companies. Nike’s ability to sustain margin expansion and convert marketing investment into top-line growth will be key to maintaining positive momentum. For Under Armour, progress on inventory normalization, better wholesale terms and clearer signs of demand stabilization will be critical for restoring profitability.

The contrasting results highlight how execution, channel mix and inventory management continue to drive divergent outcomes across apparel stocks. Market participants will parse management remarks and subsequent quarterly updates to assess whether Nike’s strength persists and whether Under Armour’s restructuring efforts can return it to consistent profitability.