Nike Stock Plummets on Weak Earnings Guidance and Declining Sales

Nike's stock price plummeted by 5.5% in morning trading after the company reported a 4% decline in sales and issued weaker-than-expected full-year profit guidance.

The company guided fiscal 2027 revenues to drop by high single digits, with estimated adjusted diluted earnings per share ranging from $1.15 to $1.35, falling short of analyst expectations of $1.68 per share.

Nike's quarterly results were mixed, with the company missing market revenue expectations in calendar Q3 2026 (fiscal Q1 2027) but beating analysts' consensus estimates for GAAP profit at $0.48 per share.

Chief Financial Officer Dave Denton warned that China's revenue will worsen for the balance of the year as Nike cleans up promotional distribution, while Chief Executive Officer Elliott Hill mentioned that deliberately reducing Dunk production created a roughly $200 million headwind in Sportswear.