Nike shares plunge on sales drop in China, lower-than-expected quarterly revenue

Nike reported mixed results for the first quarter of its fiscal 2027: revenue came in below Wall Street expectations, while earnings per share beat the consensus. The top line was hit mainly by a continued sales decline in China, where sales plunged 26% year over year in the quarter. Nike shares fell 4% in extended trading Thursday following the earnings report. The stock has now lost almost 45% year to date.

Nike’s revenue for the first quarter of its fiscal 2027, ended August 31, declined 4% year over year to $11.21 billion. Analysts surveyed by LSEG had expected $11.32 billion, CNBC reported. Earnings per share came in at $0.48 versus the $0.43 expected. Net income fell 2% to $712 million.

The management also issued full-year guidance, saying it expects revenue to decline by a high-single-digit percentage. Adjusted earnings per share are guided at $1.15-1.35 versus the $1.68 analyst consensus. The management had previously forecast that revenue would decline by only a low- to mid-single-digit percentage in the first half of the fiscal year, Reuters noted.

At the same time, the retailer announced changes to its operating model to “position Nike for long-term growth.” The strategy is expected to result in layoffs beginning in 2027, though Nike provided no further details, CNBC reported.