Overview
- Nike reported fiscal Q1 2027 results on Thursday with revenue of about $11.2 billion, net income of $712 million and diluted EPS of $0.48, beating profit estimates but missing sales expectations.
- The company guided fiscal 2027 revenue to fall by a high single‑digit percentage and gave adjusted EPS of $1.15 to $1.35, a forecast that prompted a sharp market selloff.
- Nike launched a multi‑year operating program called Pace that targets roughly $2.5 billion in cumulative savings through fiscal 2031, will reorganize geographies into three regions and will open a new campus in Bengaluru, India.
- Management said Pace will reduce roles with layoffs beginning in calendar 2027 and that it will deliberately shrink Nike Sportswear and Jordan Brand and tighten distribution in Greater China to restore scarcity and margin health.
- Nike pointed to operational gains — gross margin expanded to about 42.8% and inventory fell to roughly $7.8 billion — but shares plunged to multi‑year lows and executives will provide more detail at an investor day in mid‑November.