Nike shares fell about 3.5% after the sportswear giant reported a mixed fiscal first quarter in which an earnings beat failed to offset weaker-than-expected revenue. Adjusted earnings came in at 48 cents per share, topping Wall Street expectations of 44 cents, but revenue was $11.21 billion, below estimates of $11.35 billion and down 5% on a currency-neutral basis from a year earlier. The weakness was broad, with declines in Greater China and EMEA, while Nike Direct revenue fell 8%, and gross margin rose 60 basis points to 42.8% on lower warehousing and logistics costs. Nike also guided for fiscal 2027 revenue to decline by high-single digits, with adjusted EPS of $1.15 to $1.35 excluding about $0.15 of restructuring expenses, and said its new Pace operating model is expected to generate approximately $2.5 billion in cumulative savings through fiscal 2031 while incurring approximately $1 billion in pretax charges over the same period, including about $300 million in fiscal 2027. CEO Elliott Hill said the company's Sport Offense strategy is producing measurable progress in its performance business, while acknowledging more work remains in Sportswear, Jordan Brand and Greater China.
Nike IncRevenue missed estimates and fell 5% currency-neutral, with fiscal 2027 revenue guided to decline high-single digits, overshadowing the EPS beat.
