Earnings Flash (NKE) NIKE, Inc. Reports Q1 Revenue $11.21B, vs. FactSet Est of $11.32B

Nike (NKE) reported Q1 net income of $712M, down from $727M a year ago, with revenue falling 4% to $11.21B. The company expects a high single-digit revenue decline in FY2027 and EPS between $1.15 and $1.35. Nike announced a restructuring plan, 'Pace,' to modernize its supply chain and cut jobs in 2027. The stock is trading at $35.15, with a 4.76% dividend yield and a GF Value of $72.64, suggesting undervaluation.

Nike announced a restructuring plan, Pace, to streamline operations and save $2.5B by fiscal 2031. The company expects $1B in pre-tax restructuring charges, with $300M in the current fiscal year. Workforce reductions will begin in 2027, but specific numbers and locations are not yet determined. Nike will reorganize into three regional divisions, moving some jobs overseas.

Nike (NKE) reported fiscal Q1 revenue of $11.21B, missing estimates of $11.33B, and expects high single-digit revenue decline in fiscal 2027. EPS was $0.48, down from $0.49 YoY. The company plans job cuts to reduce costs. Gross margin expanded to 42.8%. CEO Elliott Hill acknowledged the uncertainty. Analyst Zach Warring noted valuations and expectations have been reset.

Nike CEO Elliott Hill announced changes to the company's operating model, including layoffs starting in 2027, as part of its 'Pace' strategy. The plan aims to streamline operations, reduce costs, and realign geographies, with expected savings of $2.5 billion by fiscal 2031. Nike reported Q1 2027 net income of $712 million, down 2% year-over-year, and net sales of $11.2 billion, down 4%.

Nike (NKE) reported a 26% revenue decline in Greater China for the recent quarter, implementing a strategic overhaul to revitalize its market presence. The company's dividend yield stands at 4.76% with a payout ratio of 72%, and its stock is deemed significantly undervalued with a GF Value of $72.64. Nike's GF Score is 64/100, indicating balanced financial health. Insider activity shows net buying, and institutional investors maintain cautious confidence.

Nike (NKE) reported Q1 sales of $11.2B, below forecasts, and expects a high single-digit revenue decline this fiscal year. Shares dropped over 40% in 2026. Nike's dividend yield is 4.76%, with a payout ratio suggesting sustainability. The company's GF Score is 64/100, reflecting strengths in financial health and profitability but challenges in growth and momentum. Insider selling totaled $771,333 over the past three months.