Nike Shares Rise Ahead of Earnings, Then Slip on Revenue Miss and Weak Outlook

Nike Inc. shares rose during Thursday’s session ahead of the company’s fiscal first-quarter earnings report, according to Benzinga. However, after the results were released following the closing bell, the stock closed down 1.0% at $35.05, MarketBeat reported. The decline pushed the stock near its 52-week low of $35.02.

MarketBeat reported that Nike posted earnings per share of $0.48 for the quarter, topping analysts’ consensus estimate of $0.43 by $0.05. Revenue came in at $11.21 billion, below the consensus estimate of $11.32 billion. Revenue fell 4.3% compared to the same quarter last year, when the company reported EPS of $0.49. Nike reported a net margin of 6.70% and a return on equity of 16.54%.

The company’s fiscal 2027 outlook disappointed. MarketBeat said Nike updated its guidance to EPS of $1.15 to $1.35, substantially below analysts’ expectation of roughly $1.66. Management expects revenue to decline in the high-single-digit range, with EBIT falling faster than revenue. The guidance excludes approximately $0.15 per share of Pace-related costs.

Greater China revenue fell 26% in the first quarter and is expected to worsen over the balance of fiscal 2027 as Nike removes unprofitable digital distribution and resets inventory. Management said the process will take multiple seasons and may pressure results into fiscal 2028.

Nike Sportswear declined by low double digits and Jordan Brand revenue fell by mid-teens, reflecting weaker lifestyle demand, excess inventory, and deliberate reductions in Dunk and Jordan retro supply. The performance portfolio grew at a high-single-digit rate, led by double-digit growth in running, football, training, basketball, tennis, and golf. North America revenue increased 2%, supported by performance products.

MarketBeat reported that Nike expects its Pace restructuring program to generate approximately $2.5 billion in savings, with most benefits expected in fiscal 2029–2030. The company reported a strong balance sheet with $8.4 billion in cash and short-term investments and reiterated its commitment to maintaining and eventually growing the dividend.

Nike also declared a quarterly dividend of $0.41 per share, payable on Thursday, October 1st to shareholders of record on Tuesday, September 1st. That represents an annualized dividend of $1.64 and a dividend yield of 4.7%. The dividend payout ratio is 78.47%.

Several research firms adjusted their ratings and price targets following the results, according to MarketBeat. Guggenheim reissued a “buy” rating with a $60.00 target (down from $74.00). China Renaissance set a “hold” rating and lowered its target to $47.30. Citigroup cut Nike from “neutral” to “negative.” Wells Fargo lowered its target to $40.00 with an “equal weight” rating. Benchmark raised the stock to “hold.” The consensus rating among analysts is “Hold” with a consensus price target of $46.62.

MarketBeat highlighted several key stories affecting Nike this week. Demand for new products remains a potential bright spot: Nike’s first Caitlin Clark signature shoe, the Caitlin 1, was nearly sold out shortly after launch. Nike is also giving its China organization greater control over product and distribution decisions to respond more effectively to local competitors, though financial benefits are not yet evident. Negative sentiment centered on the revenue miss, declining sales in China, weakness in the sneaker and Sportswear businesses, and the weak fiscal 2027 outlook, which intensified concerns that the turnaround will take longer and that margin pressure will persist.

The stock closed with a trading volume of 102,245,988 shares, compared to its average volume of 23,445,039. Nike has a market capitalization of $51.99 billion, a price-to-earnings ratio of 16.77, a P/E/G ratio of 2.02, and a beta of 1.10. The 50-day moving average is $39.16 and the 200-day moving average is $43.07. The stock’s 52-week high is $76.97.