NKE
Not a great night for the swoosh
Nike turned in a classic mixed bag: revenue came in at $11.21 billion, a little light versus estimates, while adjusted EPS of 48 cents beat expectations. But markets are basically saying, “Thanks for the pocket lint, now what about the bigger problem?”
The real story is the slowdown
Revenue fell 4% year over year, with Nike Direct down 8% and Greater China down a chunky 22%. North America was the one bright-ish spot, up 2%, but that wasn’t enough to offset the drag from weaker regions and channels.
A few other bits that matter if you own the stock:
- Inventories came in at $7.8 billion, down 3% from a year ago
- Nike returned about $610 million to shareholders
- The company ended the quarter with $8.4 billion in cash, cash equivalents, and short-term investments
Pace yourself, Nike
Management also rolled out “Pace,” a new operating model meant to speed up the turnaround by modernizing supply chains, opening a new campus in India, and streamlining the org chart. That’s corporate-speak for: fewer layers, more efficiency, and hopefully less wandering around the wilderness.
The catch? Nike now expects revenues to decline in the high-single digits in fiscal 2027 and guided for adjusted EPS of $1.15 to $1.35, well below the $1.69 analysts were modeling. When guidance gets chopped like that, the market usually doesn’t send thank-you notes.
Why investors care
The stock was down 4.17% after hours to $33.64, a level not seen since 2013. So yes, the quarter had some beats. But the bigger takeaway is that Nike’s turnaround still looks like a marathon, not a sprint.
Big picture: if you’re watching Nike, the question isn’t whether the brand is still powerful. It’s whether the company can turn that brand into actual growth again before investors lose patience for good.