Nike used its fiscal first-quarter 2027 earnings call to warn that restructuring pressure will extend into fiscal 2028, even as performance categories gain traction. Earnings per share of $0.48 beat the Zacks Consensus Estimate of $0.43, while revenues of $11.21 billion missed the $11.40 billion consensus. CFO David Denton said fiscal 2027 revenues are expected to decline in the high-single-digit range, with adjusted earnings per share of $1.15-$1.35 excluding about $0.15 of impact from the Pace program, and second-quarter growth facing roughly 400 basis points of pressure from prior-year Cyber Week comparisons in EMEA and North America. CEO Elliott Hill said NIKE Performance grew in the high single digits after reaching $16 billion in fiscal 2026, but Sportswear, just under half of quarterly revenue, fell low double digits, with a planned nearly 50% reduction in Dunk revenues creating an approximately $200 million headwind, while Jordan Brand at 13% of the global business declined in the mid-teens and Greater China revenues fell 26%. Denton said the Pace operating-model program is expected to generate about $2.5 billion in savings against approximately $1 billion of implementation costs, with most savings in fiscal 2029 and fiscal 2030 and full realization continuing into fiscal 2031, and Hill said Pace will establish a new campus in Bengaluru, India. Denton said the dividend remains a significant capital-allocation priority, and Nike plans to provide a longer-term financial algorithm at its November Investor Day.
Nike IncQ1 revenue missed consensus and Nike guided fiscal 2027 revenues to decline high-single-digits with a restructuring reset extending into fiscal 2028.
