Nike FY2027 Q1: sales down 4%, margin up, outlook still shrinking
Nike's fiscal 2027 first quarter was stable rather than better: revenue fell 4.0% to $11.21 billion, gross margin rose to 42.8%, and net income slipped 2.0% to $0.71 billion. Management still guides the full year to a high-single-digit revenue decline while promising $2.5 billion of savings from the new Pace restructuring. Read it as a margin-repair story with a shrinking top line, which supports a Neutral view.
1 · Expected vs. Actual
Free preview belowDiluted EPS was $0.48 versus $0.49 a year ago, and net income of $0.71 billion was down 2.0%. Gross margin expanded 60 basis points to 42.8% and SG&A fell 3.0% to $3.91 billion, but a higher effective tax rate of 22.7% versus 21.1% took part of that back. Cost control, not selling, is carrying the profit line.
Revenue was $11.21 billion, down 4.0% from $11.72 billion a year earlier and down 5.0% excluding currency swings. North America grew 2.0%, but that was swamped by a 22.0% drop in Greater China and a 28.0% drop at Converse. Direct sales fell 8.0%, with digital down 13.0% and Nike-owned stores down 5.0%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-10-02
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