Nike (NKE) reported revenue of $11.2 billion for its fiscal first quarter of 2027, the three months ended August 31, 2026, down 4% from a year earlier, as sales in Greater China fell 22% and Converse fell 28%, while North America grew 2% [1]. Net income was $0.7 billion, or 48 cents a share [1]. Nike announced a new restructuring program called Pace, expected to save about $2.5 billion through fiscal 2031, and said it expects revenue to decline by a high-single-digit percentage in fiscal 2027 [1]. The shares fell 3.6% the next day to $33.87, their lowest close of 2026 [2].
What did Nike report for fiscal Q1 2027?
| Region (Nike Brand) | Q1 FY2027 revenue | Q1 FY2026 revenue | Reported change | Currency-neutral change |
|---|---|---|---|---|
| North America | $5.13 billion | $5.02 billion | +2% | +2% |
| Europe, Middle East and Africa | $3.18 billion | $3.33 billion | -5% | -5% |
| Greater China | $1.18 billion | $1.51 billion | -22% | -26% |
| Asia Pacific and Latin America | $1.46 billion | $1.49 billion | -2% | 0% |
| Total Nike Brand | $10.95 billion | $11.36 billion | -4% | -4% |
| Converse | $0.26 billion | $0.37 billion | -28% | -28% |
Source: Nike fiscal Q1 2027 results filed with the SEC on October 1, 2026 [1]. Total Nike Brand includes Global Brand Divisions.
By channel, Nike Brand wholesale revenue, sales to retailers such as sporting-goods chains, fell 1% to $6.8 billion, while Nike Direct revenue, its own stores and website, fell 8% to $4.1 billion [1]. Within Direct, digital sales fell 13% and Nike-owned store sales 5% [1]. In North America, wholesale grew 9% while Nike Direct fell 6% [1].
Why are Nike's sales still falling?
Greater China
Greater China was the biggest drag. Revenue there fell 22%, or 26% excluding currency moves, with wholesale down 28% and direct sales down 13% [1]. Nike said it is "taking deliberate actions" to strengthen its Sportswear and Jordan businesses and Greater China [1].
Shift from direct to wholesale
Under chief executive Elliott Hill, Nike has been rebuilding relationships with retailers after years of pushing sales to its own channels. The North American numbers show the shift: wholesale up 9%, direct down 6% [1]. That supports sales volume with partners but means Nike gives up some of the higher margin it earns when it sells directly.
Consumer pressure
US consumers are under strain. The University of Michigan's consumer sentiment index fell to 46.3 in its preliminary October 2026 reading, from 53.6 a year earlier [4]. Nike's own results showed weaker demand in its direct digital channel, where sales fell 13% [1].
Is Nike's profitability improving?
Margins moved in the right direction. Gross margin rose 0.6 points to 42.8%, mainly because of lower warehousing and logistics costs [1]. Selling and administrative expense fell 3% to $3.9 billion: demand creation (marketing) rose 5% to $1.3 billion because of spending around major sports events, while operating overhead fell 6% to $2.7 billion [1]. Net income was $0.7 billion, down 2%, and diluted EPS was 48 cents [1].
The balance sheet was steady. Inventories were $7.8 billion, down 3%, and cash and short-term investments were $8.4 billion [1]. Nike returned about $610 million to shareholders through dividends in the quarter, up 3% from a year earlier [1].
In fiscal Q4 2026, which DataPorium covered in July, revenue had fallen 1% and a tariff refund lifted EPS to 72 cents [3]. The decline deepened to 4% in fiscal Q1 2027 [1].
What did Nike's executives say?
Chief executive Elliott Hill said the Sport Offense "is driving measurable progress across our performance business" and that Nike has "more work to do in NIKE Sportswear, Jordan Brand and Greater China" [1]. Chief financial officer Dave Denton said the quarter was "consistent with our expectations, supported by improved gross margin and disciplined cost management" [1].
Two smaller items weighed on earnings. The effective tax rate rose to 22.7% from 21.1% a year earlier because of foreign tax audit settlements, and Converse, Nike's lifestyle sneaker brand, saw revenue fall in every territory, to $263 million from $366 million [1]. With revenue expected to fall for the full fiscal year, the cost savings from Pace become the main lever for earnings in the near term [1].
What is Nike's Pace program and outlook?
Pace is what Nike calls "an operating model transformation" to scale its "Sport Offense," a focus on performance products for athletes [1]. It builds on a cost plan announced in March 2026 and includes modernizing Nike's supply chain, a new campus in India, a realignment into three geographic regions and further cuts to the organization [1]. Nike expects about $2.5 billion of cumulative savings through fiscal 2031, with about $1.0 billion of pre-tax charges, mostly employee-related, on top of about $0.3 billion of severance already recorded in fiscal 2026 [1].
| Fiscal 2027 outlook (as of October 1, 2026) | Guidance |
|---|---|
| Revenue | Decline of a high-single-digit percentage |
| Adjusted diluted EPS | $1.15 to $1.35 |
| Restructuring expense excluded | About $0.15 a share |
| Effective tax rate | Mid-20% range |
Source: Nike [1].
How has Nike stock performed?
DataPorium data show Nike shares closed at $35.15 on October 1, the day of the report, and $33.87 on October 2, down 3.6% and the lowest close of 2026 [2]. The stock ended September at $35.40, down 13.8% for the third quarter from $41.05 on June 30, and was down 44.4% for 2026 from $63.71 at the end of 2025 [2]. It closed at $34.71 on October 9 [2].
Nike's fiscal Q1 2027 revenue fell 4% to $11.2 billion on a 22% drop in Greater China, and it expects a high-single-digit revenue decline in fiscal 2027 as it launches the Pace restructuring.
Frequently asked questions
How much revenue did Nike report in fiscal Q1 2027?
Nike reported revenue of $11.2 billion for the quarter ended August 31, 2026, down 4% reported and 5% currency-neutral [1].
Why did Nike's sales fall in China?
Greater China revenue fell 22% in the quarter, with wholesale down 28% and Nike Direct down 13%; Nike said it is taking actions to reposition the business there [1].
What is Nike Pace?
Pace is Nike's operating model program announced on October 1, 2026, targeting about $2.5 billion of cumulative savings through fiscal 2031 through supply chain, organization and location changes [1].
What is Nike's guidance for fiscal 2027?
Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage and adjusted EPS of $1.15 to $1.35, excluding about 15 cents of Pace restructuring costs [1].
Sources & References
- [1] NIKE, Inc. Reports Fiscal 2027 First Quarter Results (Form 8-K exhibit 99.1, October 1, 2026)
- [2] DataPorium Nike (NKE) stock page (prices)
- [3] DataPorium article, Nike fiscal Q4 2026 earnings recap (July 8, 2026)
- [4] University of Michigan, Surveys of Consumers, preliminary results for October 2026
