KeyBanc Cuts Nike Rating, Lowers FY27 Revenue to $46.17B
NKE•KeyBanc cut Nike’s rating to Sector Weight, trimming FY27 revenue estimate to $46.17 billion from $46.46 billion and reducing EPS to $1.74 from $1.79. The firm flagged a 12% sales decline in Greater China, weaker EMEA growth, and a management transition with new CFO David Denton announced.
1. Rating Downgrade
KeyBanc Capital Markets downgraded Nike from Overweight to Sector Weight, citing slower turnaround and persistent marketplace headwinds that cloud the near-term outlook.
2. Revised Forecasts
The FY27 revenue estimate was trimmed by $290 million to $46.17 billion and EPS was lowered to $1.74 from $1.79, placing forecasts about 1-4% below analyst consensus.
3. Regional Headwinds
Greater China sales are now projected to fall 12% year-over-year versus a prior forecast of 9.3% decline, while EMEA trends have reversed, delaying progress on rightsizing efforts.
4. Management Changes
Nike will install former Pfizer CFO David Denton in August, replacing Matthew Friend, a transition that could prompt additional operational cleanup and delay the planned Investor Day.
