Nike Reports Revenue Decline and Weak Fiscal Guidance
Nike reported disappointing results for its first quarter of fiscal 2027 despite beating earnings expectations. The company's revenue fell by 4% year-over-year to $11.21 billion, with significant declines in key international markets such as Greater China (-22%), EMEA (-5%), and Asia Pacific/Latin America (-2%). North American sales rose slightly but were not enough to offset the global downturns. Footwear revenue also declined by 6%, while equipment dropped by 3%. Apparel was a bright spot, growing modestly at 2%. Nike's CEO Elliott Hill is leading an ongoing turnaround strategy that has shifted back toward rebuilding relationships with retailers after previous DTC-focused initiatives under his predecessor faltered. The company’s direct-to-consumer channel saw revenue fall by 8%, reinforcing the challenges in this area. Nike also issued weak guidance for fiscal 2027, forecasting high-single-digit revenue declines and net income of $1 to $1.20 per share (GAAP), a sharp drop from its previous year's earnings. Investors reacted negatively, with shares falling nearly 9% in after-hours trading following the report.
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