Nike launches Pace restructuring program amid sales decline

Nike Inc. has launched Pace, a sweeping restructuring program aimed at generating USD 2.5 billion in cumulative savings by fiscal 2031. The initiative comes as the athletic wear giant grapples with weakening sales, particularly in key markets like Greater China, where revenue plummeted 22 percent year-over-year to USD 1.18 billion in the fiscal first quarter ended August 31, 2026. North America, however, showed resilience with a 2 percent revenue increase to USD 5.13 billion.

Despite the sales decline, Nike's gross margin improved to 42.8 percent, up from 42.2 percent in the prior-year quarter. The company forecasts fiscal 2027 revenue to drop by a high-single-digit percentage and expects adjusted diluted earnings per share to range between USD 1.15 and USD 1.35. Pace is projected to incur USD 1 billion in pretax charges through fiscal 2031, including USD 300 million in fiscal 2027.

Analysts have offered mixed reactions to Nike's restructuring plans. Freedom Broker upgraded the stock from Hold to Buy while reducing its price target from USD 54 to USD 51. Conversely, Piper Sandler downgraded its target from USD 38 to USD 28, maintaining a Neutral rating. As of October 5, 2026, Nike's stock traded at EUR 30.73 on Lang & Schwarz, up 2.19 percent from the prior close of EUR 30.07.

Nike's stock, listed primarily on the NYSE under the ticker NKE, has a 52-week range of USD 31.97 to USD 72.39 and a market capitalization of USD 50.1 billion as of October 2, 2026.