Nike Revenue Falls 4% Amid Weakness in Sportswear and Jordan Brand

Nike's first-quarter fiscal 2027 revenue fell 4% year-over-year to $11.2 billion, in line with guidance. Gross margin improved 60 basis points to 42.8%, driven by supply chain cost management and foreign exchange tailwinds, but partially offset by higher discounts and unfavorable channel mix.

The company's performance business grew high single digits, led by double-digit gains in running, global football, tennis, and golf, while Nike Sportswear declined low double digits. Greater China revenue plummeted 26% due to a marketplace reset aimed at eliminating unprofitable digital distribution and reducing promotional activity.

Nike management announced a new cost-savings program called Pace, which is expected to deliver approximately $2.5 billion in savings by 2031, with implementation costs of about $1 billion and severance charges of $300 million this year. The company also plans to reduce its workforce where duplication exists.