Nike Shares Sink 10% After Q1 Revenue Miss, China Slump and Fresh Layoff Plans Shock Wall Street

Nike reported fiscal first-quarter 2027 results that beat on earnings margins but badly missed revenue expectations, sending shares down as much as 10% on October 2 to roughly $32, a level last seen in September 2013 and approximately 80% below the stock's all-time peak. Management guided for a high single-digit revenue decline for the full fiscal year 2027, a forecast that came in well below what analysts had anticipated and prompted a broad sellside reassessment.

The most acute pressure came from China, where revenue fell 26% in the quarter. Seeking Alpha analysts flagged competitive pressure from local and premium brands, shifting consumer preferences, and channel partner challenges as structural rather than cyclical problems. North American results showed more resilience, but could not offset the China reset. Nike also announced a new round of layoffs planned for 2027, following two earlier rounds of staff cuts already executed this year.

Wall Street responded with a sweeping wave of price target reductions. Bernstein SocGen cut its target to $45 from $68, Jefferies to $60 from $75, Goldman Sachs to $30 from $38, Truist Securities to $29 from $42, BofA Securities to $24 from $30, Wells Fargo to $30 from $40, Citi to $32 from $39, Guggenheim to $50 from $60, Stifel to $36 from $40, BTIG to $50 from $55, Telsey to $35 from $44, Baird to $36 from $44, and BMO Capital to $25. Raymond James reiterated Market Perform and RBC Capital reiterated Sector Perform with a $40 target. Nike also appeared on the day's downgrade list alongside multiple other names. One outlier analyst argued the stock could double from current levels, but that view sat well outside the Wall Street consensus.

Athletic apparel peers Lululemon and On Holding remained largely flat on the session, underscoring that the selling was company-specific rather than sector-wide. Nike's European peers did slip in sympathy in early trade. Extended-session trading had already moved shares to $32.40, down 7.82%, before the regular session opened.