Nike shares came under heavy pressure after the sportswear giant delivered another quarter of falling sales, issued a weaker-than-expected outlook and confirmed that additional job cuts are coming as part of a restructuring plan.
Nike reported fiscal first-quarter revenue of $11.2 billion, down 4% year over year and 5% on a currency-neutral basis. Net income slipped 2% to about $712 million, while diluted earnings per share came in at $0.48. Gross margin provided one bright spot after improving 60 basis points to 42.8%.
Nike Fiscal Q1 2027 results
Investors were more concerned about what comes next. Nike now expects revenue to decline even more in fiscal 2027, while adjusted earnings per share are forecast between $1.15 and $1.35.
China is still one of the company's biggest problems, with currency-neutral sales falling 26% during the quarter.
Nike Announces More Layoffs Under $2.5 Billion "Pace" Plan
Alongside its earnings, Nike unveiled an expanded restructuring program called Pace to generate approximately $2.5 billion in cumulative savings through fiscal 2031.
The plan includes modernizing Nike's global supply chain, opening a new campus in India, reorganizing operations into three geographic regions and further reducing costs through organizational streamlining. That streamlining will include layoffs.
Nike has not revealed how many employees will be affected, but Reuters reported that CEO Elliott Hill told employees the restructuring would ultimately mean fewer positions across the company. Decisions affecting individual jobs and locations are expected to be revealed in 2027.
Nike expects the program to generate approximately $1 billion in pretax restructuring charges through fiscal 2031, primarily related to severance and other employee costs. That comes in addition to roughly $300 million in severance expenses already recognized during fiscal 2026.
Nike Stock Drops Nearly 9% After Hours
The outlook triggered another sharp selloff in Nike stock. NKE ended Thursday's regular session at $35.15, down 0.71%. The decline accelerated after the earnings release, with shares falling another 8.71% in after-hours trading to approximately $32.09.
The reaction adds to an already difficult year for Nike shares as investors wait for clearer evidence that Hill's turnaround strategy can restore sales growth. Nike says its performance categories are showing progress, but management acknowledged that Nike Sportswear, Jordan Brand and Greater China still require a lot of work.
