- Nike shares fell about 5% last week and trade at a 13-year low in October 2026, down 23% over six months, after the fiscal Q1 print.
- Fiscal Q1 revenue was $11.2 billion, down 4%, and EPS was $0.48, down 2%, with Greater China sales down 26%.
- Sportswear, Greater China and Jordan together make up more than half of total sales and remain the problem areas: sportswear fell low double digits and Jordan fell mid-teens.
- Management guided to a high single-digit revenue decline for the full fiscal year and adjusted EPS of $1.15-$1.35, and announced another round of job cuts.
- The Pace cost-cutting plan targets about $2.5 billion in savings, but most of it lands in fiscal 2029 and 2030, a long wait for shareholders.
- Running, football, tennis and golf all grew double digits, with the performance business up high single digits, the bright spot against a weak lifestyle business.
- Nike ended the quarter with $8.4 billion in cash and short-term investments and said the dividend remains a priority; the next test is Investor Day on November 16-17.
Quotes
“things will get worse before they get better”
“management likely wanted to clear out the bad news before Investor Day”
“job cuts may help margins”