Nike Misses Revenue Consensus, Share Price Hits New 12-Year Low
Nike reported its fiscal Q1 2027 earnings on Tuesday, missing revenue consensus by $110 million. The footwear and athletic company posted revenue of $11.21 billion for the quarter ending in August, a decline of over 4% year-over-year.
The company beat earnings estimates by 4 cents, reporting $0.48 in GAAP earnings per share (EPS). However, management's outlook was less optimistic, projecting a full-year revenue decline of between 7% and 9%. The executive team now expects full-year revenue of $42.7 billion compared to the prior consensus of $45.3 billion.
CEO Elliot Hill attributed the poor performance in part to the Greater China region, which saw revenue decline by 22% during Q1. North America revenue managed a gain of 2%, but Converse revenue fell 28%, and the Nike Brand segment saw a 4% revenue decline. Nike Direct revenue declined 8%, and the full Digital segment experienced a 13% year-over-year drop.
Hill emphasized that Nike has more work to do in its struggling business units, including Nike Sportswear, Jordan Brand, and Greater China. The company is taking deliberate actions to strengthen these areas for long-term success.