Investing.com -- Nike Inc. (NYSE: NKE) reported that it strengthened its business foundation and made operational changes during fiscal 2026, according to a letter from President and Chief Executive Officer Elliott Hill to shareholders.

The sportswear company moved approximately 8,000 employees into vertical sport teams as part of a new operating model called the Sport Offense. Nike also continued to simplify its supply chain and technology organizations.

The company refreshed its senior leadership team and flattened its leadership structure during the fiscal year to get closer to the business.

For the full fiscal year 2026, Nike's gross margins expanded slightly while earnings per share declined modestly. The company made investments to reposition and create a healthier foundation for its business.

Hill acknowledged that the company's results are not yet at their full potential. He stated that Nike is focused on changing that trajectory with urgency and discipline.

The company implemented Win Now actions to strengthen fundamentals across culture, product, brand storytelling, marketplace and consumer service. These efforts focused on rebuilding capabilities and improving marketplace health.

Nike's renewed focus on sport and athlete value is building energy for its brands and driving growth in its performance business, according to Hill. The company is accelerating innovation across footwear, apparel and sport experiences.

Hill said the company plans to operate with greater discipline, improve planning and inventory management, and build a stronger, more profitable business over time.