Overview
- Nike reported fiscal Q1 results Thursday with $11.2 billion in revenue, $712 million in net income and $0.48 EPS, beating profit estimates but missing revenue expectations and forecasting full‑year sales to fall high single digits.
- The new operating model, called Pace, will reduce Nike’s regions to three, modernize the supply chain, open a campus in India and target roughly $2.5 billion in cumulative savings through fiscal 2031 while incurring about $1 billion in pre‑tax charges.
- Management said layoffs will begin in calendar 2027 and that roughly $300 million of restructuring costs will be recorded in fiscal 2027, though the company has not disclosed the number or locations of roles to be cut.
- Nike highlighted sharp weakness in Greater China, with sales down about 26% in the quarter, and reported a roughly 8–9% drop in direct‑to‑consumer sales while wholesale held up better.
- Markets reacted negatively with shares plunging in premarket trading and multiple downgrades from banks, and investors are awaiting the November investor day for a timetable and evidence that product, China and lifestyle franchises can stabilize.