Nike Warns of Revenue Decline Amid Higher Tariffs

Nike's stock faces a challenging outlook after the company reported its first-quarter results. The athletic apparel giant forecasted a high-single-digit revenue decline for fiscal 2027, following a 4% drop in sales to $11.2 billion from the same period last year.

The company attributed the decline to lower average selling prices, discounts, channel mix, and higher North American tariffs. Gross margin rose by 60 basis points to 42.8%, while diluted earnings per share came in at 48 cents.

Nike expects adjusted earnings per share of $1.15 to $1.35 for the full year, excluding restructuring expenses. This guidance represents management's forecast rather than completed financial results and covers fiscal 2027, not the calendar year.