NIKE's first quarter 2027 EPS of $0.48 beat estimates despite revenue decline and China weakness

NIKE reported first quarter 2027 results showing a revenue contraction but an earnings beat relative to expectations. Total revenues fell 4% to $11.2 billion, while gross margins expanded 60 basis points to 42.8% due to lower logistics costs. To combat ongoing brand pressure, the company introduced "Pace," a transformation program targeting $2.5 billion in cumulative savings through fiscal 2031.

Key Highlights

• Revenues of $11.21 billion missed the $11.35 billion estimate, driven by a 22% drop in Greater China and an 8% decline in NIKE Direct sales.
• Diluted EPS of $0.48 beat the consensus estimate of $0.44, supported by a 3% decrease in total selling and administrative expenses to $3.9 billion.
• Inventories improved 3% year-over-year to $7.8 billion, reflecting a more disciplined product mix despite a 13% decline in NIKE Brand Digital revenue.