Nike (NYSE: NKE) shares fell 8.5% in extended trading Thursday after the sportswear company missed quarterly revenue expectations and issued fiscal 2027 revenue and adjusted EPS outlooks below Wall Street estimates, even as fiscal first-quarter earnings per share beat Wall Street consensus.
The selloff accompanied a sharper warning on Greater China, where Nike said its fiscal 2027 assumptions include further revenue deterioration.
Nike reported diluted earnings of $0.48 per share for the quarter ended Aug. 31, down from $0.49 a year earlier but above the $0.44 Wall Street consensus estimate. Revenue fell 4% to $11.213 billion, below the roughly $11.3 billion consensus expectation.
Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage, compared with the low-single-digit decline analysts had expected. The company guided adjusted diluted EPS to $1.15 to $1.35 for the year, below analysts’ consensus estimate of $1.68.
Nike Expects More China Revenue Pressure for the Rest of Fiscal 2027
The Greater China warning added another source of pressure to Nike’s weaker fiscal 2027 outlook. Sales in the region fell to $1.18 billion from $1.512 billion in fiscal Q1, a 22% reported decline and a 26% drop on a currency-neutral basis. Wholesale revenue in Greater China fell 31% on a currency-neutral basis, while Nike Direct revenue fell 18% on the same basis.
Chief Financial Officer Dave Denton said during the earnings call that Nike’s fiscal-year guidance assumes China “gets worse from a revenue perspective” for the balance of fiscal 2027 as the company resets the business, with those actions expected to weigh more heavily on growth than they did in Q1.
Nike did not quantify Greater China’s remaining-quarter declines.
The deterioration is also showing up more sharply in profit than in reported sales. Greater China EBIT fell 34% to $248 million from $377 million, compared with the region’s 22% reported revenue decline. By comparison, total Nike Brand EBIT declined just 3% to $1.36 billion.
China Digital Cleanup Will Take Multiple Seasons
Nike’s expectation of further China revenue pressure partly reflects its deliberate effort to shrink parts of the country’s marketplace as it tries to reduce discounting, improve inventory levels and tighten control over digital distribution. Management said near-term China revenue and profitability will be affected and that the digital cleanup is expected to take “multiple seasons.”
The company has been narrowing online distribution and working with retail partners to reduce inventory while investing in more premium physical-store presentation. From January 2027, most partner-run e-commerce storefronts in China will stop carrying Nike products. Nike will center its online presence on Nike.com.cn, the Nike App, and official brand flagships on Tmall, JD.com, and Douyin, with limited exceptions for licensees.
