Nike reports Q1 miss, China slump and announces restructuring plan
Nike posted first‑quarter net income of $712 million and revenue of $11.21 billion, both down year over year. Revenue fell 4% overall and 26% in China, prompting the company to unveil a supply‑chain restructuring called “Pace.” The earnings release triggered an 8.7% drop in after‑hours trading and a forecast of a high‑single‑digit revenue decline for fiscal 2027.
Why it matters
The after‑hours share decline of 8.7% reflects investor reaction to the weaker results and a revenue outlook that is steeper than market expectations, according to the earnings release. Nike also said the restructuring should generate about $2.5 billion of cost savings by fiscal 2031, which could improve margins over the longer term.
Key facts
- 1Q1 net income was $712 million. gurufocus.com
- 2Q1 revenue totaled $11.21 billion. gurufocus.com
- 3Revenue declined 4% year over year. gurufocus.com
- 4Revenue in China fell 26% from a year earlier. mk.co.kr
- 5Shares fell 8.7% in after‑hours trading following the release. mk.co.kr
- 6Nike expects the restructuring to save roughly $2.5 billion by fiscal 2031. mk.co.kr
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.