The Australian arm of footwear and apparel giant Nike has reported a strong lift in sales for FY26, outpacing global performance in a challenging local economy.
According to new filings on ASIC, Nike Australia reported total sales of $985.4 million in FY26 to May 31 this year, up from $891.2 million in FY25.
The Australian arm also lifted its total profit after tax for the year by around $1 million to $14.2 million.
Nike’s Australian sales boom came as Nike, Inc. reported flat sales growth in FY26 globally to May 31, hitting US$46.4 billion (~A$66.5 billion). This is flat on a reported basis and down 2 per cent on a currency-neutral basis.
The challenged global sales were driven down by an 11 per cent sales dive in its Greater China market. Sales across Europe, the Middle East and Africa rose 3 per cent on a reported basis, but fell 3 per cent on a currency-neutral basis. The declines were partially offset by North America, where sales grew 5 per cent.
Nike’s Asia Pacific and Latin America regions saw combined sales hold flat on a reported basis, and down 1 per cent on a currency-neutral basis.
The APAC and LATAM markets’ strongest growth category was apparel, with sales up 6 per cent. Footwear is the markets’ largest category by value, with sales at US$4.38 billion – down 2 per cent on the prior year.
Nike Australia’s sales growth came with a significant build-up of stock. Net inventories rose 32 per cent to $178 million at May 31, up from $134.4 million a year earlier. Finished goods on hand, before provisions, climbed from $140.7 million to $197.1 million.
The local arm also recognised $17.4 million in expenses for inventory carried at net realisable value, up from $2.3 million in FY25. The write-down was booked in cost of sales. Its provision for inventory obsolescence nearly tripled to $19.3 million.
The stock build came despite Nike, Inc. holding global inventories flat at US$7.5 billion over the same period.
This inventory growth weighed on Nike Australia’s cash position. The company recorded a net operating cash outflow of $29.7 million in FY26, reversing an inflow of $21.2 million the previous year. Its inventory increase drained $43.6 million, and a reduction in trade and other payables, employee benefits and provisions drained a further $24.7 million.
Cash and cash equivalents fell from $68.5 million to $22.8 million. Most of the drop came from money Nike Australia had placed on deposit with related party Nike Global Trading B.V.’s Singapore branch, which fell from $61.5 million to $2 million.
The company had $42.7 million in unused bank overdraft facilities at year-end, guaranteed by Nike, Inc.
The filing also points to pressure on Nike’s local retail partners. Nike Australia recognised a $903,000 charge for expected credit losses on trade receivables, up from $407,000 in FY25. Receivables written off as uncollectible rose from $106,000 to $619,000.
According to the filing, the individually impaired receivables relate to retailers that are mainly experiencing economic difficulties. Trade receivables of $10.1 million were past due at May 31, up from $9.9 million a year earlier.
The filing does not name the retailers involved in these write-offs. Last year, Nike Australia took surfwear retailer SurfStitch to the Supreme Court of Victoria, claiming it was owed $237,760.38 and seeking to have the business wound up. SurfStitch then entered administration in June 2025 and was subsequently taken on and revived under new owners Best Markets.
The strain on local stockists comes as Nike leans more heavily on wholesale globally. Nike, Inc.’s wholesale revenues rose 6 per cent in FY26 to US$27.5 billion, while sales through its Nike Direct channel fell 6 per cent to US$17.7 billion.