Nike's Stock Suffers Amid Persistent Revenue Declines

Nike's stock price has been sliding for months, and analysts are lowering their estimates and price targets. The company's downward EPS estimate revisions have been a warning sign for two years, with a 20% decline in consensus EPS estimate for FY 2027 from $2.00 to $1.80. Revenues are also falling flat, with the current fiscal year Zacks consensus estimate for Nike's top line at $46.32 billion, representing slight negative growth from the prior year's sales.

The company reported a quarterly disappointment in Q1 2027 earnings, despite beating on earnings due to margins. However, revenue was over 4% lower than last year. Analysts are busy lowering their estimates and price targets, with the EPS consensus for full-year FY 2027 dropping from $1.67 to $1.61, representing annual growth of just 1.9%. This trend is likely to continue as more analyst estimate revisions roll in.

Nike's management has emphasized a two-track story: performance categories gaining traction, while Sportswear, Jordan Brand and Greater China remain under pressure. The company is prioritizing marketplace health over near-term volume, and CFO David Denton introduced a clearer financial framework, including full-year guidance and a multiyear cost program.