Nike reported fiscal 2027 first-quarter revenue of $11.2 billion, down 4% from a year earlier and below Wall Street's $11.3 billion estimate, with diluted EPS of $0.48 versus $0.49 a year earlier but ahead of the $0.44 analysts expected. The bigger issue was guidance: Nike now expects fiscal 2027 revenue to fall by a high-single-digit percentage, a much weaker forecast than analysts had been looking for, and the stock fell sharply after the announcement. The decline caps a multi-year slide, with revenue falling from $51.4 billion in fiscal 2024 to $46.3 billion a year later and $46.4 billion in fiscal 2026, while operating income dropped from $6.3 billion to $3.7 billion over the same span. Greater China revenue fell 26% on a currency-neutral basis in the latest quarter, the ninth consecutive quarter of declining sales in a region that accounts for around 15% of Nike's annual revenue, and management has warned the distribution cleanup could take several seasons. On the positive side, North American sales rose 2% on a currency-neutral basis, gross margin improved 60 basis points to 42.8%, selling and administrative expenses fell 3%, and inventory declined 3% to $7.8 billion, while the new Pace restructuring program is expected to generate around $2.5 billion in savings through fiscal 2031, mostly in fiscal 2029 and 2030.
Nike IncNike guided fiscal 2027 revenue to fall high-single-digit, far below analyst expectations, after a 4% Q1 revenue decline.
