Nike Reports Mixed Q1 Earnings Amid Revenue Decline Forecast

Nike has reported earnings of 48 cents per share for its fiscal first quarter, surpassing analysts' expectations of approximately 44 cents but slightly down from 49 cents a year earlier. The company's revenue for the quarter, however, fell short of forecasts, coming in at around $11.2 billion compared to the anticipated $11.3 billion, marking a decline of roughly 4% from $11.7 billion a year ago. The Nike Brand revenue, which includes the Jordan line, was approximately $11 billion, also below projections.

Despite the earnings beat, Nike's outlook for fiscal 2027 is concerning, as the company anticipates a high-single-digit percentage decline in revenue. The adjusted earnings per share are expected to range between $1.15 and $1.35 for the year. This forecast has raised concerns among investors, particularly as Nike's shares are trading near their lowest levels since early 2014, having dropped about 43% this year and approximately 80% from their peak in November 2021.

The company did report some operational improvements, with a gross margin increase to 42.8% from 42.2% a year earlier and inventory levels of about $7.8 billion, which were below the expected $8 billion. However, challenges persist, particularly in Greater China, where earnings before interest and taxes were about $250 million, falling short of the estimated $310 million. Chief Executive Elliott Hill, who returned to lead the company in October 2024, is focusing on athlete-led performance products and strengthening relationships with wholesale partners as part of his turnaround strategy. Investors are now looking for insights into sales stabilization and improvements in key markets during the upcoming conference call.

© 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: KLEA News