Nike Maintains Dividend Payout Amid Restructuring and Market Pressures

Nike US6541061031

In a clear commitment to shareholder returns, Nike's board has declared a quarterly cash dividend of $0.41 per share for both its Class A and Class B common stock. This decision comes as the global sportswear giant navigates a significant corporate overhaul and faces persistent headwinds in key regional markets.

The announcement, made on Friday, underscores a remarkable 22-year history of consecutive annual dividend increases. Shareholders of record on March 2 will receive the payment on April 1. This consistent payout policy is being upheld even as the company's recent financial performance shows signs of strain, serving as a signal of management's confidence in its long-term strategy despite near-term profitability challenges.

Financial Performance: Revenue Growth Stalls, Profits Contract

The dividend declaration coincides with the publication of results for the second quarter of fiscal 2026, which ended on November 30, 2025. The figures reveal a stark contrast between top-line stability and a sharp decline in bottom-line profitability.

• Revenue: $12.4 billion (+1%)
• Net Income: $0.8 billion (-32%)
• Diluted Earnings Per Share (EPS): $0.53 (-32%)

Company leadership cited sustained margin pressure, partly driven by elevated product costs, as a primary factor weighing on earnings. The maintained dividend, against this backdrop of falling profits, highlights a strategic choice to preserve the shareholder return program.

Operational Challenges and Restructuring Efforts

Under the guidance of CEO Elliott Hill, Nike is actively executing a multi-faceted transformation plan. The core initiatives focus on rebuilding relationships with wholesale partners and streamlining the organizational structure to enhance agility.

A significant drag on performance has been the Greater China region, where second-quarter revenues declined substantially. This regional softness is complicating efforts to reignite robust overall growth momentum quickly.

As part of its broader cost-efficiency drive, Nike is also restructuring its wholly-owned subsidiary, Converse. The move involves eliminating corporate roles at Converse to better align its operating model with that of its parent company, aiming to reduce expenses and improve operational effectiveness.

For now, the company's operational focus remains fixed on stabilizing margins and mitigating the ongoing challenges in the Greater China market, even as it continues to reward its shareholder base with a reliable dividend.