Nike Stock Crashes to 13-Year Low After Disappointing Q1 Earnings
Nike Inc (NYSE:NKE) reported disappointing Q1 earnings after the market close on Thursday. The company's revenue of $11.21 billion fell short of analyst estimates of $11.33 billion, according to Benzinga Pro. Despite this, Nike managed to beat expectations with adjusted earnings of 48 cents per share.
Total revenue was down 4% year-over-year, and Nike Brand revenues totaled $11 billion, also down 4%. The company's North American sales were a bright spot, increasing by 2%, but Greater China saw a significant decline of 22%.
Nike introduced its Pace initiative to accelerate and scale the success of the Sport Offense. This plan includes modernizing the global supply chain, opening a new campus in India, and realigning into three geographic regions to cut costs.
The company guided for fiscal 2027 revenue decline in the high-single digits and adjusted earnings of $1.15 to $1.35 per share, which falls short of estimates of $1.69 per share. Earnings guidance excludes approximately 15 cents of restructuring expenses related to Pace.