Nike stock sinks as revenue misses estimates, expects to cut jobs

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 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.

Nike (NKE) reported fiscal Q1 sales of $11.21B, missing estimates of $11.33B, with declines in China and EMEA. The company forecasted a high-single-digit revenue decline for the fiscal year, worse than analysts' low-single-digit decline expectations. Shares fell 6% in extended trading. CEO Elliott Hill acknowledged challenges in key segments and emphasized long-term actions. The stock has dropped nearly 50% since January.

Nike (NYSE:NKE) reported Q1 revenue of $11.21B, missing estimates, with adjusted earnings of $0.48B, beating estimates. Revenue declined 4% YoY, with regional sales mixed. Inventory fell 3% YoY. Nike guided for high-single-digit revenue decline in fiscal 2027 and adjusted earnings of $1.15-$1.35B, below estimates. Shares dropped 4.17% in after-hours trading.