Nike Stock Falls to $32 After a $11.2 Billion Quarter, a…
By Tobi Opeyemi Amure
AI summary of the source article
Nike reported fiscal first-quarter revenue of $11.2 billion and diluted earnings per share of $0.48, but its stock dropped 8.71 percent to $32.09 in after-hours trading due to weak forward guidance. The company forecasted full-year fiscal 2027 revenue to fall by a high-single-digit percentage and guided adjusted diluted EPS to $1.15–$1.35, substantially below analyst expectations. Performance was dragged down by Greater China, where currency-neutral revenue plunged 26 percent. In response, Nike announced its "Pace" restructuring plan, targeting approximately $2.5 billion in cumulative savings through fiscal 2031 against about $1.0 billion in pre-tax charges, primarily consisting of employee-related costs.
Why it matters
The weak fiscal outlook and steep sales drop in Greater China indicate a longer-than-anticipated turnaround, prompting concerns regarding future earnings and the sustainability of Nike's annual dividend.
Key facts
- First-quarter revenue was $11.2 billion, diluted EPS was $0.48, and Greater China revenue fell 26 percent currency-neutral.
- Nike projects full-year fiscal 2027 revenue to fall by a high-single-digit percentage, with adjusted diluted EPS of $1.15 to $1.35.
- The 'Pace' restructuring plan targets about $2.5 billion in cumulative savings through fiscal 2031 against roughly $1.0 billion in pre-tax charges.