Nike Stock Falls Over 10% on FY2027 Sales Outlook Miss; Dunk Pullback Cut $200M From Sportswear Sales
Nike (NKE) shares fell 10.25% premarket after reporting weaker-than-expected Q1 revenue of $11.213B and forecasting a high-single-digit percentage full-year sales decline, below analyst estimates. The company also cut Dunk supply, reducing Sportswear revenue by $200M. NKE guided adjusted EPS to $1.15-$1.35, below consensus. Greater China revenue fell 22% and Jordan Brand revenue declined mid-teens percentage.
How this was made
The 30-second read
Why it matters
The guidance downgrade is the primary catalyst for the stock's move; no other macro or sector events are driving the price.
Market read
Nike's earnings miss and outlook cut are material for the consumer discretionary sector and for investors tracking US large‑cap stocks.
What to watch
Potential upside from upcoming product launches and the performance business's high‑single‑digit growth may offset sportswear weakness.
Background
Nike's Q1 earnings release showed revenue below estimates and a high‑single‑digit full‑year decline, prompting a sharp share sell‑off.
Ticker impact
Nike reported Q1 revenue miss and cut full-year sales outlook, causing a 10.25% pre‑market drop.
likely further downside as investors price in weaker outlook
The earnings release contains new, material numbers and a steep guidance downgrade, prompting immediate sell pressure.
Market effects
Sportswear and apparel sector faces pressure as Nike's cut may signal broader demand weakness.
Greater China exposure highlights regional slowdown, affecting peers with China exposure.
Nike's size makes the miss relevant for global consumer discretionary sentiment.
Counterpoint
If the supply cuts improve inventory health, margins could stabilize, offering a buying opportunity on the dip.
Key entities
- companyNike
Global sportswear and apparel manufacturer.
