Nike (NKE) Earnings Date & Reports

Key Takeaways

• Nike reported first quarter fiscal 2027 revenue of $11.21 billion, down 4% year over year and below the roughly $11.32 billion Wall Street consensus.
• Diluted earnings per share (EPS) came in at $0.48, beating analyst expectations of about $0.43, while net income slipped 2% to $712 million.
• Gross margin expanded 60 basis points to 42.8%, helped by lower warehousing and logistics costs, exceeding the roughly 42.4% analysts had projected.
• Management guided to a high-single-digit revenue decline for fiscal 2027 and unveiled "Pace," a restructuring program targeting about $2.5 billion in savings through fiscal 2031.
• Greater China revenue fell 26% on a currency-neutral basis, while Converse sales dropped 28%, offsetting 2% growth in North America.

Earnings Context and Why It Matters

Nike's first quarter fiscal 2027 results, released on October 1, 2026 for the period ended August 31, 2026, arrived at a pivotal moment in the company's multi-year turnaround. Under CEO Elliott Hill, Nike has been working to reset its product assortment, restore relationships with wholesale partners, and reignite brand momentum after pulling back from several retailers in favor of its own direct channels. With shares down sharply over the past year, investors are scrutinizing whether the "Sport Offense" strategy can translate into sustained growth. This report matters because it tests whether recent improvements in performance categories and gross margin are enough to outweigh persistent weakness in lifestyle franchises like Sportswear and Jordan Brand, as well as an ongoing slump in Greater China.

Reported Results

Nike posted total revenue of $11.21 billion, a 4% decline on a reported basis and a 5% decline on a currency-neutral basis, missing the consensus estimate of approximately $11.32 billion. Diluted earnings per share reached $0.48, topping expectations of roughly $0.43, though net income fell 2% to $712 million. Gross margin improved 60 basis points to 42.8%, above the roughly 42.4% analysts anticipated, driven by lower warehousing and logistics costs. Selling and administrative expense decreased 3% to $3.9 billion.

Performance was uneven across the portfolio. NIKE Brand revenue declined 4% to $11.0 billion, with NIKE Direct down 8% to $4.1 billion and wholesale down 1% to $6.8 billion. North America grew 2% to $5.13 billion, but Greater China revenue fell 22% on a reported basis (26% currency-neutral) to $1.18 billion. Converse revenue tumbled 28% to $263 million. Inventories declined 3% to $7.8 billion, while the company returned about $610 million to shareholders through dividends.

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Market Reaction and Investor Sentiment

Investors reacted negatively to the report despite the EPS beat. Nike shares fell roughly 4% in after-hours trading following the October 1 release, and continued to slide the next day, closing down about 5.6% on October 2. The sell-off reflected frustration with the top-line miss and, more importantly, the cautious fiscal 2027 outlook, which calls for a high-single-digit revenue decline — a sharper contraction than many had expected. The announcement of workforce reductions beginning in 2027 and the admission that weakness in Sportswear, Jordan Brand, and Greater China will likely persist into fiscal 2028 added to the cautious tone. Sentiment remains divided, with some analysts citing limited visibility on a sales inflection and others pointing to gross-margin expansion and North America growth as early signs the reset is taking hold.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will focus on Nike's ability to stabilize revenue while preserving profitability. Management guided fiscal 2027 revenue to decline in the high-single digits, with adjusted diluted EPS expected in the range of $1.15 to $1.35, excluding roughly $0.15 per share of Pace-related restructuring charges. The effective tax rate is expected to land in the mid-20% range.

A key near-term catalyst is Nike's Investor Day scheduled for November 16–17, where leadership is expected to detail the Pace cost-saving program and its innovation pipeline. The restructuring, which includes modernizing the supply chain, reorganizing into three geographies, and establishing a new campus in India, is projected to generate about $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion in pre-tax charges over that period.

Beyond the Investor Day, watch for signs of stabilization in Greater China, progress in resetting Sportswear and Jordan Brand inventory, and whether gross-margin gains from supply-chain efficiencies can be sustained. Investors should also monitor the balance between reduced promotional activity and unit demand, as the company prioritizes healthier, higher-quality revenue over near-term sales volume.

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