Nike Earnings Disappoint as Revenue Declines in Q1 2027

Nike Inc (NKE) posted disappointing Q1 2027 earnings, with a 5% currency-neutral revenue decline and a gross margin expansion of just 60 basis points.

The company's Performance business was a bright spot, growing high single digits across various sports including running, football, training, basketball, tennis, and golf. However, Greater China revenue plummeted by 26%, EMEA declined by 5%, and North America grew only 2%.

Nike's CFO Dave Denton attributed the decline in Greater China to a marketplace reset, which will continue to pressure revenue for the remainder of the year. The company expects fiscal 2027 revenue to decline in high single digits, with EBIT expected to fall even further due to gross margin pressure and fixed cost deleverage.

Nike's cash and short-term investments stood at $8.4 billion, while shareholder returns totaled approximately $610 million via dividends in the quarter. The Pace program is expected to deliver around $2.5 billion in savings, enabling reinvestment in growth initiatives.