Nike Stock Tumbles on Revenue Decline and Weaker 2027 Outlook
Nike's stock price plummeted in after-hours trading following its first-quarter earnings report. The sportswear maker reported revenue of $11.2 billion, which fell short of the expected $11.32 billion and represented a 4% decline from the same period last year.
The company guided to a revenue decline for fiscal 2027, with adjusted earnings per share (EPS) expected to be between $1.15 and $1.35, excluding restructuring expenses. This is significantly lower than analysts' expectations of $1.66 EPS.
Nike's Greater China region was the weakest link, with a 22% decline in revenue, while North America saw a 2% increase due to growing wholesale sales. The company's own stores and digital platforms, Nike Direct, experienced an 8% drop in revenue, with digital sales down by 13%.
Nike's CEO Elliott Hill acknowledged the gaps in performance and stated that the company is taking deliberate actions to strengthen its businesses for the long-term.