Nike Q1 net income falls to $0.7 billion; revenue drops 5% to $11.2 billion year over year
NKE•Nike reported first-quarter revenue of $11.2 billion, down 4% year over year, and net income of $0.7 billion. The company launched a savings program targeting about $2.5 billion in cumulative savings through FY31 and sees FY27 revenue declining by a high-single-digit percentage.
1. Quarterly results
Nike posted first-quarter revenue of $11.2 billion, down 4% year over year. Gross margin widened 0.6 percentage points to 42.8%, while selling and administrative expense slipped to $3.9 billion. Net income eased to $0.7 billion, and diluted earnings per share was $0.48.
2. Sales and outlook
Converse revenue fell 28% to $263 million, and NIKE Direct revenue dropped 8% to $4.1 billion. Management launched “Pace,” which targets about $2.5 billion in cumulative savings through FY31; the company sees FY27 revenue declining by a high-single-digit percentage.
