Nike reported first-quarter revenue slipped 5% on a currency-neutral basis to $11.2 billion, with management guiding the full year to a high single-digit decline. The performance portfolio grew high single digits, and would have grown low double digits without the China reset, as running, global football, tennis and golf all posted double-digit gains, while sportswear, just under half of revenue, fell into the low double digits and Jordan Brand, at 13% of the business, fell by the mid-teens. China revenue dropped 26% to $1.18 billion, Converse sank 28% to $263 million, and Nike Direct fell 9% with its digital arm down 13%. Gross margin improved 60 basis points to 42.8% and SG&A fell 3% to $3.9 billion, while the company unveiled a restructuring program called Pace targeting roughly $2.5 billion in savings for about $1 billion in costs, with most of the benefit arriving in fiscal 2029 and 2030. Adjusted earnings per share of $1.15 to $1.35 for the year exclude about $0.15 of Pace costs, and management warned the resets could spill into fiscal 2028, with the next catalyst set for the November Investor Day.
Nike IncQ1 revenue fell 5% with full-year guidance for a high single-digit decline, plus a $1B restructuring program (Pace) whose savings mostly arrive in FY2029-2030.
Converse revenue sank 28% to $263 million in the quarter.
