Nike Struggles with Revenue Decline and Downward EPS Estimates

Nike's (NKE) struggles continue, with shares hitting multi-year lows near $32. Despite beating earnings estimates due to improved margins, the company's revenue fell 4% from last year.

The Zacks Rank has warned investors about Nike's downward EPS estimate revisions for two years. In just a few months, the consensus EPS estimate for FY 2027 (ending May) has dropped by 20%, from $2.00 to $1.80. Next fiscal year is also seeing a revision trend, with estimates declining over 10% from $2.70 to $2.40.

Nike's management attributes the decline to underperforming categories, including Sportswear, Jordan Brand, and Greater China. CEO Elliott Hill emphasized prioritizing marketplace health over near-term volume growth. CFO David Denton introduced a new financial framework, including full-year guidance and a multiyear cost program.