Investors reacted negatively to first quarter results from Nike (NYSE: NKE) after the company reported weaker annual performance and an analyst miss.
The organization recorded earnings of $0.48 per share in the latest quarter, outperforming analyst estimates of earnings of $0.44 per share by $0.04.
The business recorded quarterly revenue of $11.21 billion, underperforming analyst projections of $11.33 billion by $120.00 million.
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Compared with the prior-year period, earnings decreased 2.0 percent, whereas revenue moved lower by 4.4 percent.
In its forward guidance, Nike profit estimate outlook for the fiscal year 2027 at $1.15 to $1.35 per share, compared with analyst estimates of $1.68 per share.
In the first quarter, Nike's gross margin expanded by 60 basis points to 42.8 percent.
NIKE Brand revenues totaled $11.0 billion, declining 4 percent on both a reported and currency-neutral basis, with decreases in Greater China and EMEA partially offset by growth in North America. NIKE Brand wholesale revenues were $6.8 billion, down 1 percent, primarily due to declines in Greater China, offset by North American growth. NIKE Direct revenues fell 8 percent to $4.1 billion, with NIKE Brand Digital down 13 percent and NIKE-owned stores down 5 percent. Converse revenues dropped 28 percent to $263 million, with declines across all territories.
For fiscal 2027, Nike expects revenues to decline by high-single digits.
Elliott Hill, President and Chief Executive Officer, said, "The Sport Offense is driving measurable progress across our performance business, and we introduced Pace to help us accelerate and scale that momentum across NIKE. We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we're taking deliberate actions to strengthen those businesses the right way for the long-term."