Nike reported a 5% currency-neutral revenue decline to $11.2 billion in its latest quarter, with Greater China down 26% and Nike Sportswear and Jordan remaining major drags, while its performance business grew at a high-single-digit rate. CEO Elliott Hill is steering Nike back toward sport, with running, football, training, basketball, tennis and golf all showing growth, and the company nearly tripling its share of the max-cushioning category over the past year. Nike Sportswear, which accounted for just under half of quarterly revenue, fell by low double digits as the company deliberately reduces supply of the Dunk and cuts back some Jordan retro releases to restore scarcity. Management expects China to worsen before it improves, with the reset continuing for multiple seasons, and its Pace restructuring program is expected to generate about $2.5 billion in savings, most of which are not expected until fiscal 2029 and 2030. Nike expects fiscal 2027 adjusted EPS of only $1.15 to $1.35, excluding about $0.15 of restructuring impact, and at 21.01x forward earnings investors are paying for a recovery that has yet to materialize, making November's Investor Day, where management will provide a five-year financial framework, the key test. Hedge fund sentiment weakened in the second quarter, with 56 hedge funds holding Nike, down from 71 in the first quarter, while the value of those positions rose slightly from $1.31 billion to $1.35 billion.
Nike IncNike reported a 5% currency-neutral revenue decline to $11.2B and guided fiscal 2027 adjusted EPS to only $1.15-$1.35, with China down 26% and the turnaround not yet materialized.
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