Nike posts Q1 FY2027 revenue of $11.2 billion and launches Pace transformation program
Nike reported first‑quarter fiscal 2027 revenue of $11.2 billion, a 4% year‑over‑year decline, and gross margin of 42.8%. Net profit fell roughly 2% year over year. The company introduced the Pace operating‑model transformation, targeting $2.5 billion of cumulative savings through fiscal 2031 and expecting about $1 billion of pretax charges, including $300 million in FY2027. Nike forecast a high‑single‑digit percentage revenue decline for the full fiscal year 2027.
Why it matters
The company expects the Pace program to generate $2.5 billion of cost savings, which could improve profitability over the next several years, but the near‑term revenue decline and restructuring charges may weigh on earnings and share price in FY2027.
Key facts
- 1First‑quarter FY2027 revenue was $11.2 billion, down 4% YoY. nai500.com
- 2Gross margin rose 60 basis points to 42.8% in the quarter. nai500.com
- 3Nike expects the Pace program to deliver cumulative savings of approximately $2.5 billion through FY2031. nai500.com
- 4The company anticipates about $1 billion of pretax charges related to Pace through FY2031, including $300 million in FY2027. pulse2.com
- 5Adjusted diluted EPS for FY2027 is projected between $1.15 and $1.35, excluding roughly $0.15 per share of restructuring expenses. pulse2.com
- 6Nike forecasts FY2027 revenue to decline by a high‑single‑digit percentage. pulse2.com
Open questions
- Net profit is reported as $712 million in material 1 and approximately $700 million in material 2.
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.