Nike shares fell sharply Friday after the company reported disappointing first-quarter revenue and issued a bleak outlook for fiscal 2027. Nike announced the results after the market close Thursday.
The company now expects full-year revenue to decline by a high-single-digit percentage. Analysts had previously expected a 2% decline.
Nike cited continued weakness in its lifestyle product lines and a 26% currency-neutral sales decline in Greater China. The company also announced a new round of job cuts under its Pace restructuring program.
Pace aims to save $2.5 billion by fiscal 2031. Nike expects about $1 billion in pre-tax charges, mostly for employee severance.
Nike shares were down around 8–10% in morning trading. Analysts criticized the slow pace of the turnaround and said the outlook reset the recovery timeline.
The Consumer Discretionary Select Sector SPDR ETF (XLY) was relatively unchanged, suggesting investors viewed Nike’s challenges as largely company-specific for now.