Nike Q1 revenue slips 4% to $11.2 billion; launches Pace cost program, guides FY27 sales down high-single digits

Nike closed its fiscal first quarter with softer top-line results and a multi-year operating overhaul. In a release furnished with an 8-K Thursday for the quarter ended Aug. 31, 2026, NIKE, Inc. said revenue fell 4% to $11.213 billion and diluted earnings per share came in at $0.48 as the company introduced Pace, a cost and operating-model program built around its Sport Offense strategy.

Net income was $712 million, down 2% from a year earlier. Gross margin widened 60 basis points to 42.8%, which Nike linked primarily to lower warehousing and logistics costs. Selling and administrative expense fell 3% to $3.910 billion, with operating overhead down 6% and demand-creation spending up 5%.

NIKE Brand revenue was $10.952 billion, down 4%. Wholesale brand sales were $6.804 billion, down 1%, while NIKE Direct revenue was $4.142 billion, down 8% (down 9% currency-neutral), reflecting a 13% drop in brand digital and a 5% decline in Nike-owned stores. Greater China revenue fell 22% to $1.180 billion (down 26% currency-neutral). North America rose 2% to $5.127 billion, while Europe, Middle East & Africa slipped 5% to $3.176 billion. Converse revenue plunged 28% to $263 million.

Pace is described as an operating-model transformation that builds on a March 2026 cost realignment and includes supply-chain modernization, a new campus in India, a shift to three geographies, and further streamlining. Nike expects about $2.5 billion in cumulative savings through fiscal 2031 and about $1.0 billion of pre-tax charges (mostly employee-related) through fiscal 2031, plus roughly $0.3 billion of severance already recognized in fiscal 2026; about $0.3 billion of charges are expected in fiscal 2027.

For fiscal 2027, Nike said revenues are expected to decline high-single digits. Adjusted diluted EPS is guided to $1.15 to $1.35, excluding about $0.15 of Pace-related restructuring expense. The company returned about $610 million to shareholders via dividends in the quarter and declared a $0.410 dividend per common share.

Nike shares were little changed Thursday, last near $35.15, down about 0.7% on the day.

By the numbers

• Q1 revenue: $11.213 billion (−4% reported / −5% currency-neutral)
• Diluted EPS: $0.48; net income: $712 million (−2%)
• Gross margin: 42.8% (+60 bps)
• Greater China revenue: $1.180 billion (−22%)
• Converse revenue: $263 million (−28%)
• FY27 outlook: high-single-digit revenue decline; adjusted EPS $1.15–$1.35

Sources

1. NIKE, Inc. Form 8-K, filed Oct. 1, 2026, accession 0000320187-26-000184
2. NIKE, Inc. Exhibit 99.1, “NIKE, Inc. Reports Fiscal 2027 First Quarter Results,” dated Oct. 1, 2026

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.