Business, Finance, NYSE-NASDAQ

Nike Earnings: Q1 Sales Fall 4% as Greater China Drops 26%; Nike Guides Fiscal 2027 Revenue Lower

Nike earnings for the first quarter of fiscal 2027 showed a company still shrinking on the way to a turnaround. Nike, Inc. (NYSE: NKE) reported revenue of $11.2 billion for the quarter ended Aug. 31, 2026, down 4% from a year earlier. Greater China sales fell 26% on a currency-neutral basis. The company now expects full-year revenue to decline by a high-single-digit percentage, and it announced a multi-year restructuring program called “Pace” that targets $2.5 billion in cumulative savings. Nike released the results after the market close on Thursday, Oct. 1. Its shares were down sharply in premarket trading Friday.

Nike Earnings at a Glance: Q1 Fiscal 2027

Verified facts — as reported in Nike’s fiscal 2027 first-quarter results release (Oct. 1, 2026).

Metric	Q1 FY2027	Change vs. Q1 FY2026
Total revenue	$11.2 billion	-4% reported; -5% currency-neutral
NIKE Brand revenue	$11.0 billion	-4%
Converse revenue	$263 million	-28%
NIKE Wholesale	$6.8 billion	-1%
NIKE Direct	$4.1 billion	-8% reported; -9% currency-neutral
NIKE Digital	—	-13%
Gross margin	42.8%	+60 basis points
Net income	$712 million	-2%
Diluted EPS	$0.48	—
Inventories	$7.8 billion	-3%
Cash and short-term investments	$8.4 billion	-$0.2 billion
Dividends paid	$610 million	+3%

Revenue by geography

North America: $5.1 billion, up 2%. This was the only major region that grew.
EMEA: $3.2 billion, down 5%.
Greater China: $1.2 billion, down 22% reported and 26% currency-neutral.
Asia Pacific & Latin America (APLA): $1.5 billion, down 2%.

How the Quarter Compared With Wall Street Estimates

Reported figures from market coverage. Consensus numbers are compiled by third parties and vary by source.

Revenue: $11.21 billion, compared with the consensus estimate of about $11.32 billion (StockTitan; Grafa).
Earnings per share: $0.48, ahead of the $0.43 consensus estimate (StockTitan).
Full-year outlook: Grafa reported that analysts had expected fiscal 2027 revenue to fall about 2%. Nike’s guidance calls for a high-single-digit decline.

Nike’s Fiscal 2027 Outlook

Company guidance — forward-looking statements by Nike, not verified outcomes.

Revenue: expected to decline by a high-single-digit percentage for the fiscal year.
Diluted EPS: $1.15 to $1.35, excluding about $0.15 per share of restructuring-related charges.
Effective tax rate: in the mid-20% range.

On the earnings call, management flagged a revenue headwind of roughly 400 basis points in the fiscal second quarter. It attributed the headwind to tough comparisons with last year’s Cyber Week promotions in EMEA and elevated North America sell-in a year ago, according to a call transcript summary from TradingKey.

The “Pace” Restructuring Program

Nike’s release outlined a new operating program called Pace:

Savings target: $2.5 billion in cumulative savings through fiscal 2031.
Cost: about $1.0 billion in pre-tax charges through fiscal 2031, mostly severance.
Timing of charges: about $0.3 billion of severance costs were recorded in fiscal 2026, and about $0.3 billion of charges are expected in fiscal 2027.
Scope: management said on the call that the program will reduce headcount by eliminating duplication and restructuring operations (TradingKey).

Greater China: The Biggest Drag

Greater China was the weakest region. According to StockTitan’s review of the results, the region’s EBIT fell 34% and it accounted for about two-thirds of the company’s total revenue decline.

Company statements from the earnings call (via TradingKey):

Nike is cutting unprofitable digital channels in China and consolidating around official flagship stores on Tmall, JD and Douyin.
The company is refreshing its physical retail in the market and launching locally designed products.
CEO Elliott Hill said, “We expect our digital cleanup to take multiple seasons.” Management expects China results to deteriorate further during fiscal 2027.

Jordan Brand and Sportswear

Management said on the call that Jordan Brand, about 13% of the business, declined by a mid-teens percentage. Nike is deliberately cutting the volume and frequency of retro releases to restore scarcity. NIKE Sportswear fell by a low-double-digit percentage. Management attributed part of that decline to planned distribution cuts worth about $200 million and to weak sell-through of older footwear styles.

What Nike’s Executives Said

Company statements from the Oct. 1 release.

CEO Elliott Hill said Nike’s “Sport Offense” strategy is driving measurable progress, and that deliberate actions are strengthening NIKE Sportswear, Jordan Brand and Greater China for the long term.
CFO Dave Denton said the results were consistent with the company’s expectations and that Nike remains focused on product-portfolio health and resource discipline.

Market Reaction

Developing — prices as reported early Friday, Oct. 2, before the regular session.

After the close Thursday, shares fell 6.6% to $32.78 in extended trading, then recovered to about $33.85 before the call (StockTitan).
In Friday premarket trading, Nike was down about 8.5% at $32.15, according to Grafa. Stocktwits reported a decline of about 9%.
Before the report, Nike shares were already near 12-year lows, according to Charles Schwab’s Oct. 1 market update.

Company Background

Nike, based in Beaverton, Oregon, is the world’s largest athletic footwear and apparel company. Its brands include NIKE, Jordan and Converse. Elliott Hill, a longtime Nike executive, returned to lead the company as CEO in October 2024. Since then, Nike has been rebuilding its wholesale relationships, cutting back on discounting and shifting its focus back to sport-specific products after several years of prioritizing direct-to-consumer sales.

Why the Nike Earnings Report Matters

Analysis — Vanderbiltreport.com’s assessment, not company guidance.

The profit beat came with a weaker outlook. Nike beat on quarterly EPS and expanded gross margin by 60 basis points. However, the full-year revenue guidance was much weaker than analysts expected, so investors are weighing operational progress against a longer recovery timeline.
China is the main swing factor. With Greater China accounting for most of the quarter’s decline, and management saying the cleanup will take multiple seasons, results there will likely shape how investors judge the turnaround.
The restructuring changes the cost picture. Pace adds about $1 billion in charges through fiscal 2031 in exchange for a stated $2.5 billion in savings. That shifts some of the story from revenue growth to cost structure.
North America was the bright spot. North America grew 2% while every other region declined, suggesting the wholesale reset is furthest along in Nike’s largest market.

What Comes Next for Nike

Fiscal Q2 (September–November 2026): management has guided to a revenue headwind of about 400 basis points from prior-year comparisons. This period includes the holiday shopping season and Cyber Week.
Next earnings report: Nike usually reports fiscal second-quarter results in late December. Watch the company’s investor relations site for the confirmed date.
Pace execution: further detail on the workforce reductions and the timing of charges is expected over fiscal 2027.
China: watch for progress on the channel consolidation and the store refresh described on the call.

Related Coverage on Vanderbiltreport.com

Sources

Publisher Disclaimer: Vanderbiltreport.com publishes news and information for general informational and educational purposes. Information is compiled from sources believed to be reliable, but Vanderbiltreport.com does not guarantee the accuracy, completeness, or timeliness of all information presented. Readers should independently verify information and conduct their own research before making financial, investment, business, or other decisions.

Menu

Recent News