Nike, Inc. - Class B (NKE)
Nike stock sinks after earnings as its comeback plan turns into more layoffs
Nike's comeback is becoming more painful than investors had hoped. Shares of the sportswear giant sank 8.5% in extended trading on Thursday after weaker-than-expected quarterly sales and a gloomier full-year outlook arrived alongside another restructuring plan that will eliminate jobs.
Nike: Management Is Taking Right Actions, But Bleeding Is Worse Than I Expected (Downgrade)
Nike reported weak Q1 results and issued dismal FY27 guidance, prompting a reduction in my fair value estimate to $34-40 per share. Greater China revenue plunged 26% y/y, and management does not expect regional recovery until FY28 or later, citing intense local competition. Jordan Brand's oversaturation is being addressed by reducing launch volumes, a necessary move that will weigh on FY27 but should restore brand health longer-term.
NIKE, Inc. (NKE) Q1 2027 Earnings Call Transcript
NIKE, Inc. (NKE) Q1 2027 Earnings Call Transcript
NIKE Q1 Earnings Call Highlights
NIKE NYSE: NKE said its first-quarter fiscal 2027 results met its expectations, as growth in its performance categories was offset by continued weakness in Sportswear, Jordan Brand and Greater China. The company reported revenue of $11.2 billion, down 4% on a reported basis and 5% on a currency-neutral basis, while diluted earnings per share fell 2% to $0.48.
Nike Q1: The Company Of The Past Is Gone
Nike, Inc. remains unattractive despite a 76% five-year decline, still trading at 21x forward earnings. Q1 earnings revealed a 4% revenue decline, with significant weakness in Europe and Greater China; guidance was notably below consensus. Expense management improved margins, but increased 'demand creation' spending failed to stem revenue losses, highlighting execution and competitive challenges.
Nike (NKE) Reports Q1 Earnings: What Key Metrics Have to Say
Although the revenue and EPS for Nike (NKE) give a sense of how its business performed in the quarter ended August 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Nike (NKE) Q1 Earnings Surpass Estimates
Nike (NKE) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.49 per share a year ago.
Nike's Earnings: Run Away While You Can (Rating Downgrade)
Nike enters FY27 with worsening fundamentals: revenue shrinking, China collapsing, wholesale relying on costly retailer working capital, and margins at risk despite temporary logistics relief. Q1 FY27 shows accelerating deterioration: China is down 22%, Converse is down 28%, EPS reset 25% below expectations, and management is guiding high‑single‑digit revenue declines for the full year. Valuation remains stretched at 27x guided EPS, dividend payout hits 131%, $2B debt maturity looms, and multiple compression points to a clear path toward $30 or even $25.
Nike issues bleak forecast, plans to slash more jobs after sales disappoint
The weaker-than-expected forecast added to investor unease about the pace of CEO Elliott Hill's turnaround.
Nike Says Business Will Get Worse Before It Gets Better. The Stock Is Sliding
Nike said its sales are going to get worse this year. Investors aren't pleased.
Nike's troubles are mounting, and sales could fall further
The company has faced struggles in China and in its sneaker business.
Nike Projects Sales Decline This Year After Lower First-Quarter Revenue
The company expects sales during the year to decline by a high-single-digit percentage after challenges in China persisted in the first quarter.
