Nike Sales Miss Estimates as It Forecasts Fiscal 2027 Decline

Nike reported fiscal first-quarter net sales of about $11.2 billion, down 4% from a year earlier, and forecast revenue will decline by a high-single-digit percentage in fiscal 2027. The company also announced a restructuring program it says could produce about $2.5 billion in cumulative savings through fiscal 2031, as it confronts weakness in Greater China and other parts of its business. The sales result missed analysts’ average estimate of about $11.32 billion. On a currency-neutral basis, revenue fell 5%. Nike reported net income of $712 million, compared with $727 million in the same quarter a year earlier, while earnings per share of 48 cents exceeded the 43-cent consensus estimate. Gross margin rose 0.6 percentage point to 42.8%, helped by lower warehousing and logistics costs, the company said. Greater China sales fell 26% on a currency-neutral basis, extending a reported run of nine consecutive quarterly declines in the region. Nike also recorded declines in Europe, the Middle East and Africa, while North American sales grew 2% on a constant-currency basis. Converse revenue fell 28% to $263 million, and Nike Direct revenue declined.