Nike reports Q1 revenue decline and unveils $2.5 billion cost‑cutting plan with new layoffs
Nike posted fiscal Q1 2027 revenue of $11.2 billion, down 4% year over year, and net income of $712 million, a 2% drop. The company announced a "Pace" restructuring program targeting $2.5 billion of savings through 2031 and said additional layoffs will begin in calendar 2027. CEO Elliott Hill highlighted ongoing weakness in Greater China and the need to strengthen Nike Sportswear and Jordan Brand.
Why it matters
The company warned that revenue will decline in the high single‑digit range in fiscal 2027, which could pressure earnings and cash flow. Citi analysts kept a neutral rating, noting that the cost‑cutting plan may not boost performance until 2029.
Key facts
- 1Fiscal Q1 2027 revenue was $11.2 billion, down 4% YoY. coinpaper.com
- 2Net income for the quarter was $712 million, a 2% decline from the prior year. briefs.co
- 3Nike announced a $2.5 billion cost‑cutting plan called "Pace" to be completed by 2031. ibtimes.com
- 4The plan includes additional layoffs starting in calendar 2027. coinpaper.com
- 5Nike eliminated 775 positions at U.S. distribution centers in January and 1,400 jobs, mainly in tech, in April. briefs.co
- 6Shares fell 8.71% in after‑hours trading, reaching about $32.09. coinpaper.com
Summary written by AlphAI from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.