Nike Shares Slide as Company Forecasts Lower Sales and Earnings

Nike shares fall after the company reports declining revenue, weaker Greater China and Converse sales, and a lower full-year

Nike shares fell about 6% in after-hours trading after the company warned that sales would decline during its current fiscal year, adding to pressure on the sportswear giant as it works through weakness across several major businesses.

According to data shared by Coin Bureau on X, Nike's quarterly revenue fell 4% to $11.2 billion, while the company also issued a full-year earnings forecast below Wall Street expectations. Nike's fiscal 2027 first-quarter results confirm revenue of $11.2 billion, down 4% from a year earlier.

Nike Reports Declines Across Key Businesses

The latest results showed significant declines in several parts of Nike's business. Greater China revenue fell 22%, while Nike Brand Digital revenue declined 13%. Converse revenue dropped 28% during the quarter.

Nike's reported figures show that the weakness was broad enough to offset stronger performance in some areas. The company said NIKE Brand revenue fell 4%, with declines in Greater China and Europe, the Middle East and Africa partially offset by growth in North America.

Converse generated $263 million in revenue during markets the quarter, down 28% from the same period a year earlier. Nike Direct revenue also declined 8% on a reported basis, reflecting continued weakness in its direct-to-consumer operations.

The company reported diluted earnings of $0.48 per share for the quarter. At the same time, Nike said it expects fiscal 2027 revenue to decline by a high-single-digit percentage. Adjusted diluted earnings per share are projected at between $1.15 and $1.35.

Earnings Outlook Falls Below Analyst Expectations

The earnings guidance cited by Coin Bureau was well below the $1.65 per-share forecast from analysts, highlighting the scale of the gap between Nike's outlook and market expectations.

The weaker outlook came as Nike announced a broader operating transformation called Pace. The company expects the initiative to generate approximately $2.5 billion in cumulative savings through fiscal 2031, while also incurring pre-tax charges and severance costs related to the restructuring.

Nike said the changes are intended to reposition its Sportswear and Jordan businesses and address challenges in Greater China. Chief Executive Officer Elliott Hill said the company still has work to do in those areas while emphasizing efforts to strengthen the business over the longer term.

Nike Stock Remains Well Below Its 2021 Peak

Coin Bureau also noted that JPMorgan, Bank of America and Morgan Stanley had moved to ratings equivalent to a sell recommendation on Nike's stock.

The market decline has been substantial. Coin Bureau said Nike shares are down more than 80% from their 2021 peak, representing roughly $230 billion in erased market value.

Nike's recent performance follows a difficult fiscal 2026. The company reported full-year revenue of $46.4 billion, broadly flat on a reported basis, while Nike Direct revenue declined 6% and Converse revenue fell 31% for the year.

The latest guidance indicates that Nike expects the pressure on sales to continue through fiscal 2027, while its Pace restructuring and product strategy are intended to address the weaker areas of the business.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.

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