Nike forecasts FY27 revenue decline in high-single digits as China weakness lingers
NKE•Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage and adjusted diluted EPS of $1.15 to $1.35. Fiscal Q1 revenue fell 4% to $11.21 billion, while net income declined 2% to $712 million.
1. Fiscal 2027 outlook
Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage and adjusted diluted EPS of $1.15 to $1.35. It expects its effective tax rate to be in the mid-20% range.
2. Quarterly results
Fiscal Q1 revenue fell 4% to $11.21 billion, slightly below the $11.32 billion analyst estimate. Net income declined 2% to $712 million, beating the $638.21 million estimate.
3. Costs and savings
Nike attributed revenue declines mainly to Greater China and EMEA, partly offset by growth in North America. Gross margin expansion reflected lower warehousing and logistics costs, while reduced wage-related and administrative expenses lowered operating overhead. The company announced its Pace transformation program, targeting $2.5 billion in cumulative savings by fiscal 2031.
