Nike Shares Hit 13-Year Low as Revenue Miss and Weak Guidance Spark Wave of Analyst Cuts

Nike reported fiscal first-quarter 2027 revenue of $11.2 billion, down roughly 4% year over year and below Wall Street expectations, sending shares to their lowest level since September 2013. Earnings per share of $0.48 beat consensus, but the top-line miss and a forecast for a high-single-digit revenue decline for the full fiscal year 2027 overshadowed the margin gain. The company also disclosed fresh layoff plans, its third round of staff cuts after two already this year.

China was the sharpest drag, with revenue falling 26%, and analysts at Seeking Alpha flagged competitive pressure from local and premium brands, shifting consumer preferences, and channel-partner oversight as structural obstacles to recovery. North American results showed some resilience but were not enough to offset the reset in China.

Shares fell as much as 10% intraday before settling down roughly 6%, trading near $32.57 and erasing approximately $60 billion in market capitalization over the past year. Nike is now down more than 55% over the past 12 months and more than 48% year to date, with the stock back to levels last seen in September 2013. A dollar invested five years ago is worth roughly 23 cents today.

At least 13 brokerages cut their price targets on Friday. The deepest reductions came from Truist Securities, which lowered its target to $29 from $42, BofA Securities to $24 from $30, and Goldman Sachs to $30 from $38. Jefferies cut to $60 from $75 while Bernstein SocGen Group trimmed to $45 from $68. Raymond James and RBC Capital reiterated Market Perform and Sector Perform ratings respectively, with RBC holding a $40 target. Bernstein analyst Aneesha Sherman was a dissenting voice, calling the numbers "de-risked" and recommending buying the post-earnings dip.

Rivals Lululemon and On Holding were largely flat on the day, while broader athletic peers in Europe dipped in sympathy. Nike's dividend yield has climbed toward 5%, with the quarterly payout at $0.41 per share, or $1.64 annualized, as the depressed share price mechanically lifts the yield.