Nike forecasts FY27 revenue decline in high-single digits as China weakness lingers

NIKE

01/10/2026 21:25

Overview
Athletic apparel and footwear maker's fiscal Q1 revenue fell 4%, a slight miss versus analyst expectations
Net income beat analyst estimates, despite a 2% yr/yr decline
Company announced Pace transformation program targeting $2.5 bln in cumulative savings by fiscal 2031
Shares of the company were down about 5% in extended trading

Outlook
Nike expects fiscal 2027 revenues to decline high-single digits
Nike sees fiscal 2027 adj diluted EPS at $1.15 to $1.35
Company expects fiscal 2027 effective tax rate in the mid-20 percent range

Result Drivers
REGIONAL DECLINES - Co said revenue fell mainly due to declines in Greater China and EMEA, partially offset by growth in North America
LOWER LOGISTICS COSTS - Co attributed gross margin expansion to reduced warehousing and logistics costs
LOWER OPERATING COSTS - Co said operating overhead fell due to reduced wage-related and administrative expenses

Company press release: ID:nBwbwwzkca

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$11.21 bln
$11.32 bln (27 Analysts)
Q1 EPS
 
$0.48
 
Q1 Net Income
Beat
$712 mln
$638.21 mln (25 Analysts)
Q1 Gross Margin
 
42.80%
 
Q1 Gross Profit
 
$4.80 bln
 
Q1 Pretax Profit
 
$921 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 13 "strong buy" or "buy", 25 "hold" and 6 "sell" or "strong sell"
The average consensus recommendation for the footwear peer group is "buy"
Wall Street's median 12-month price target for NIKE, Inc. is $44.00, about 24.3% above its September 30 closing price of $35.40
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)