Nike Faces Revenue Decline and Strategic Reset Amid Share Price Drop
Nike Inc. (NKE) has seen its stock price fall more than 76% over the past five years amid a multi-year revenue decline, with Q1 FY27 revenue dropping to $11.2 billion—a decrease of 4%. The company's management now expects full-year FY27 revenue to continue declining at a high-single-digit rate, and EBIT is projected to fall even faster than revenue. The ongoing challenges reflect broader issues in Nike’s business model as it navigates shifting consumer preferences, supply chain disruptions, and increased competition. In response, the company has initiated a strategic reset aimed at stabilizing its performance and restoring growth across key markets.