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NIKE's Shares Fall More Than 2% Post Q1 Earnings: What's Ahead?
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Key Takeaways
NIKE shares fell 2.2% after Q1 fiscal 2027 results, as revenues dropped 4% despite an earnings beat.
Greater China sales plunged 22%, while weakness in Sportswear and Jordan Brand weighed on NIKE's turnaround.
NIKE expects fiscal 2027 revenues to fall at a high-single-digit rate despite $2.5B in planned Pace savings.
NIKE, Inc. (NKE - Free Report) shares came under pressure following its first-quarter fiscal 2027 earnings report, as investors focused on weak sales trends and a cautious outlook despite an earnings beat. The company reported quarterly earnings of 48 cents per share, surpassing the Zacks Consensus Estimate of 43 cents. However, revenues of $11.2 billion declined 4% year over year and fell short of expectations, raising concerns about the pace of NIKE’s ongoing turnaround.
The results highlight the uneven nature of NIKE’s ongoing turnaround. Performance-oriented categories continued to gain traction, but weakness in Sportswear, Jordan Brand and Greater China offset some of the progress. NIKE is also taking deliberate actions to reduce supply across weaker portions of its portfolio, which is expected to pressure sales in the near term while supporting healthier inventory and full-price selling over time.
Greater China remained a key drag on performance, with revenues declining sharply. The region continues to face intense competition, softer consumer demand and challenges related to product momentum. Weakness in the Sportswear and Jordan brands also remains a concern, although the company is working to improve product assortments and strengthen its connection with consumers.
We note that NKE's shares have fallen 2.2% since it released its first-quarter fiscal 2027 results on Oct. 1, 2026, after market close. Shares of the company have lost 20.2% in the past six months compared with the industry's decline of 17.3%.
Image Source: Zacks Investment Research
NKE's Q1 Key Financial Metrics
NIKE's geographic trends stayed mixed in the reported quarter. NIKE’s North America revenues increased 2% year over year to $5.1 billion in the first quarter of fiscal 2027. The region benefited from performance products, with management highlighting Running, Global Football and Basketball as key contributors. The segment's sales met the Zacks Consensus Estimate.
EMEA revenues fell 5% to $3.18 billion, primarily because of a sharp 11% decline in footwear revenues. Apparel and equipment growth partly offset the footwear weakness. The segment's sales outpaced the Zacks Consensus Estimate of $3.14 billion.
Greater China revenues declined 22% on a reported basis to $1.2 billion and 26% on a currency-neutral basis. The segment's sales lagged the Zacks Consensus Estimate of $1.3 billion.
Asia Pacific & Latin America revenues dipped 2% to $1.5 billion but were flat excluding currency changes. The segment's sales almost met the Zacks Consensus Estimate.
Persistent weakness in Greater China and sluggish demand across key lifestyle categories could limit near-term growth. EMEA promotional activity and a tougher North America sell-in comparison are expected to pressure second-quarter revenues by roughly 400 basis points. While these factors may weigh on near-term sales, the company is prioritizing higher-quality revenues, reduced promotional dependence and a more sustainable growth trajectory.
NIKE introduced Pace, an operating-model transformation designed to scale its Sport Offense, modernize the supply chain and streamline the organization. As part of Pace, it intends to organize its operations across three geographies. Pace is expected to generate about $2.5 billion in cumulative savings through fiscal 2031.
However, NIKE expects fiscal 2027 revenues to decline at a high-single-digit rate, highlighting the difficult operating environment. Management expects supply-reduction actions in Sportswear, Jordan Brand and Greater China to weigh on revenues through the remainder of the current fiscal year and into fiscal 2028.
Adjusted earnings per share are projected to be in the band of $1.15-$1.35, excluding about 15 cents of Pace-related restructuring impact in fiscal 2027. The company recorded earnings per share of $1.58 in the last fiscal year. EBIT is expected to decrease by a higher percentage than revenues due to gross-margin pressure, fixed-cost deleverage and higher input costs, while selling, general & administrative expense is projected to be down year over year.
Image Source: Zacks Investment Research
Analysts have also become pessimistic about the stock, as NIKE has seen downward earnings estimate revisions over the past seven days. The Zacks Consensus Estimate has declined 16.8% to $1.34 per share for fiscal 2027 and 16% to $1.78 for fiscal 2028 in the said time period. The consensus estimate for NIKE’s fiscal 2027 earnings per share and revenues indicate a year-over-year decrease of 15.2% and 7.9%, respectively. The weakening earnings outlook, coupled with expectations for continued sales pressure, could keep investors on the sidelines. Hence, NIKE’s Zacks Rank #5 (Strong Sell) reflects the cautious outlook for the stock.
Duluth Holdings delivered a trailing four-quarter earnings surprise of 122.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates a rise of 18.6% from the year-ago reported number.
Columbia Sportswear (COLM - Free Report) , which engages in marketing and distribution of outdoor and active lifestyle apparel, footwear and accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 1.9% from the year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 36%, on average.
Gildan Activewear Inc. (GIL - Free Report) , which is a manufacturer and marketer of premium quality branded basic activewear, currently carries a Zacks Rank of 2.
GIL delivered a trailing four-quarter earnings surprise of 2.5%, on average. The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales indicates growth of 66.3% from the year-ago recorded number.
View the Zacks #1 Rank List
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NIKE's Shares Fall More Than 2% Post Q1 Earnings: What's Ahead?
Key Takeaways
NIKE, Inc. (NKE - Free Report) shares came under pressure following its first-quarter fiscal 2027 earnings report, as investors focused on weak sales trends and a cautious outlook despite an earnings beat. The company reported quarterly earnings of 48 cents per share, surpassing the Zacks Consensus Estimate of 43 cents. However, revenues of $11.2 billion declined 4% year over year and fell short of expectations, raising concerns about the pace of NIKE’s ongoing turnaround.
The results highlight the uneven nature of NIKE’s ongoing turnaround. Performance-oriented categories continued to gain traction, but weakness in Sportswear, Jordan Brand and Greater China offset some of the progress. NIKE is also taking deliberate actions to reduce supply across weaker portions of its portfolio, which is expected to pressure sales in the near term while supporting healthier inventory and full-price selling over time.
Greater China remained a key drag on performance, with revenues declining sharply. The region continues to face intense competition, softer consumer demand and challenges related to product momentum. Weakness in the Sportswear and Jordan brands also remains a concern, although the company is working to improve product assortments and strengthen its connection with consumers.
We note that NKE's shares have fallen 2.2% since it released its first-quarter fiscal 2027 results on Oct. 1, 2026, after market close. Shares of the company have lost 20.2% in the past six months compared with the industry's decline of 17.3%.
Image Source: Zacks Investment Research
NKE's Q1 Key Financial Metrics
NIKE's geographic trends stayed mixed in the reported quarter. NIKE’s North America revenues increased 2% year over year to $5.1 billion in the first quarter of fiscal 2027. The region benefited from performance products, with management highlighting Running, Global Football and Basketball as key contributors. The segment's sales met the Zacks Consensus Estimate.
EMEA revenues fell 5% to $3.18 billion, primarily because of a sharp 11% decline in footwear revenues. Apparel and equipment growth partly offset the footwear weakness. The segment's sales outpaced the Zacks Consensus Estimate of $3.14 billion.
Greater China revenues declined 22% on a reported basis to $1.2 billion and 26% on a currency-neutral basis. The segment's sales lagged the Zacks Consensus Estimate of $1.3 billion.
Asia Pacific & Latin America revenues dipped 2% to $1.5 billion but were flat excluding currency changes. The segment's sales almost met the Zacks Consensus Estimate.
NIKE, Inc. Price, Consensus and EPS Surprise
NIKE, Inc. price-consensus-eps-surprise-chart | NIKE, Inc. Quote
What Does NIKE Fiscal 2027 View Say?
Persistent weakness in Greater China and sluggish demand across key lifestyle categories could limit near-term growth. EMEA promotional activity and a tougher North America sell-in comparison are expected to pressure second-quarter revenues by roughly 400 basis points. While these factors may weigh on near-term sales, the company is prioritizing higher-quality revenues, reduced promotional dependence and a more sustainable growth trajectory.
NIKE introduced Pace, an operating-model transformation designed to scale its Sport Offense, modernize the supply chain and streamline the organization. As part of Pace, it intends to organize its operations across three geographies. Pace is expected to generate about $2.5 billion in cumulative savings through fiscal 2031.
However, NIKE expects fiscal 2027 revenues to decline at a high-single-digit rate, highlighting the difficult operating environment. Management expects supply-reduction actions in Sportswear, Jordan Brand and Greater China to weigh on revenues through the remainder of the current fiscal year and into fiscal 2028.
Adjusted earnings per share are projected to be in the band of $1.15-$1.35, excluding about 15 cents of Pace-related restructuring impact in fiscal 2027. The company recorded earnings per share of $1.58 in the last fiscal year. EBIT is expected to decrease by a higher percentage than revenues due to gross-margin pressure, fixed-cost deleverage and higher input costs, while selling, general & administrative expense is projected to be down year over year.
Image Source: Zacks Investment Research
Analysts have also become pessimistic about the stock, as NIKE has seen downward earnings estimate revisions over the past seven days. The Zacks Consensus Estimate has declined 16.8% to $1.34 per share for fiscal 2027 and 16% to $1.78 for fiscal 2028 in the said time period. The consensus estimate for NIKE’s fiscal 2027 earnings per share and revenues indicate a year-over-year decrease of 15.2% and 7.9%, respectively. The weakening earnings outlook, coupled with expectations for continued sales pressure, could keep investors on the sidelines. Hence, NIKE’s Zacks Rank #5 (Strong Sell) reflects the cautious outlook for the stock.
Key Picks in the Consumer Discretionary Space
Duluth Holdings Inc. (DLTH - Free Report) , which deals in casual wear, workwear and accessories for men and women, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Duluth Holdings delivered a trailing four-quarter earnings surprise of 122.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates a rise of 18.6% from the year-ago reported number.
Columbia Sportswear (COLM - Free Report) , which engages in marketing and distribution of outdoor and active lifestyle apparel, footwear and accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 1.9% from the year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 36%, on average.
Gildan Activewear Inc. (GIL - Free Report) , which is a manufacturer and marketer of premium quality branded basic activewear, currently carries a Zacks Rank of 2.
GIL delivered a trailing four-quarter earnings surprise of 2.5%, on average. The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales indicates growth of 66.3% from the year-ago recorded number.