Nike Q1 fiscal 2027 earnings trigger 13‑year low and record 4.8% dividend yield
Nike reported first‑quarter fiscal 2027 results that forecast a high single‑digit revenue decline, sending the share price to a 13‑year intraday low of $31.97 before closing at $33.87. The drop, combined with 24 years of dividend increases, lifted the dividend yield to a record 4.8% for a Dow component. Management said the dividend remains a priority, but cash dividends and capex now exceed free cash flow, raising sustainability concerns.
Why it matters
The higher yield may attract income‑focused investors, but the dividend‑to‑cash flow mismatch could pressure Nike to cut the payout, affecting cash‑flow‑sensitive shareholders. The earnings decline also signals ongoing challenges in key brands and the China market, which could weigh on future revenue growth.
Key facts
- 1Nike’s share price fell to $31.97 intraday on Oct. 2 before ending the session at $33.87. fool.com
- 2The Q1 fiscal 2027 earnings guidance projects a high single‑digit decline in fiscal 2027 revenue. fool.com
- 3The dividend yield rose to 4.8%, the highest among Dow Jones Industrial Average components. fool.com
- 4Jordan brand revenue fell by mid‑teens in the quarter, and the brand accounts for 13% of global sales. fool.com
- 5Nike Sportswear, just under half of Q1 revenue, saw low double‑digit declines. fool.com
- 6China revenue declined 26% in Q1. fool.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.