Nike Stock Falls After Hours as It Guides to a Revenue Decline

Nike (NYSE: NKE), the sportswear maker, reported first-quarter earnings per share of $0.48 against the Yahoo Finance consensus of $0.44, but revenue of $11.2bn fell short of the $11.32bn expected. The shares fell after hours as the company guided to a revenue decline.

Nike closed at $35.15 on the NYSE today, down 0.71%, before the results. At 9:18pm UK time the shares were indicated at $33.20 in after-hours trading, down 5.55%.

Revenue for the quarter to the 31st of August was $11,213m, down 4% from $11,720m a year earlier, or 5% at constant currency. Revenue came in about 1% short of consensus. Net income was $712m against $727m, and diluted EPS was $0.48 against $0.49 a year ago.

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The outlook was weaker. Nike expects fiscal 2027 revenue to fall by a high-single-digit percentage, and adjusted EPS of $1.15 to $1.35, excluding about $0.15 of restructuring expense. Analysts had expected fiscal 2027 EPS of $1.66.

Nike gave no dollar figure for the revenue guide; the fiscal 2027 revenue consensus was $45.34bn, against $46.4bn a year earlier.

Greater China was the weak point: revenue fell 22% to $1,180m, or 26% at constant currency. EMEA fell 5%, while North America rose 2% as wholesale, sales to retailers, grew 9%. Nike Direct, its own stores and digital, fell 8%, with digital down 13%. Converse fell 28%.

Bar chart of Nike revenue change by region in fiscal Q1 2027: Converse -28%, Greater China -22%, EMEA -5%, total -4%, APLA -2%, North America +2% — Nike revenue change by region, three months to the 31st of August, year on year, reported basis. Source: NIKE, Inc.

Chief executive Elliott Hill acknowledged the gaps.

We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we’re taking deliberate actions to strengthen those businesses the right way for the long-term.

Elliott Hill, NIKE

Margins helped. Gross margin rose to 42.8% from 42.2% on lower warehousing and logistics costs. Inventories were $7.8bn, down 3%.

Nike’s “Pace” restructuring, which includes a new campus in India, realignment to three geographies and supply chain changes, targets $2.5bn of cumulative savings through fiscal 2031, with about $1.0bn of pre-tax charges. Nike holds its results call at 10pm UK time today.