Nike Stock Falls After Q1 Revenue Miss and Weak Full-Year Guidance Despite EPS Beat

Nike reported fiscal first-quarter 2027 results on October 1 that missed revenue expectations and sent shares lower, even as earnings per share topped estimates. Revenue came in at $11.21 billion, below the $11.32 billion consensus and down 4% year over year, while adjusted EPS of $0.48 beat the $0.43 estimate. Gross margin expanded to 42.8%, ahead of the 42.2% forecast, driven primarily by lower warehousing and logistics costs.

The bigger blow came from forward guidance. Nike issued a full-year fiscal 2027 adjusted EPS range of $1.15 to $1.35, well below the $1.65 analyst estimate, and said it expects revenue to decline in the high-single digits for the year. That outlook includes roughly $0.15 per share in charges tied to its Pace restructuring program, which the company said will accelerate and scale its operating model transformation.

Weakness was concentrated in Nike Direct and key international markets. Nike Direct revenue fell 8% year over year to $4.1 billion, missing the $4.4 billion estimate, with Nike Digital down 13% and Nike Stores down 5%. Greater China revenue dropped 22% to $1.18 billion, far short of the $1.3 billion estimate, while EMEA fell 5% to $3.18 billion. Converse continued to struggle, declining 28% to $263 million versus a $296 million estimate. North America was the lone bright spot, rising 2% to $5.13 billion. Management acknowledged ongoing challenges, saying the company has "more work to do in Nike Sportswear, Jordan Brand and Greater China."