NKE
Same old sneaker drama
Nike turned in a classic “good news, bad news, mostly bad vibes” quarter. Revenue came in at $11.21 billion, a bit shy of Wall Street’s $11.33 billion target, while adjusted EPS of 48 cents beat expectations. But the market didn’t show up for the tiny victory lap, because the company also said sales are headed for another slog.
The part Wall Street actually cares about
For fiscal 2027, Nike now expects revenue to fall by a high-single-digit percentage. It also guided adjusted EPS to $1.15 to $1.35, which is miles below the $1.69 analysts were looking for. The forecast excludes about 15 cents a share in restructuring costs tied to the PACE cost-cutting plan — basically Nike saying, “Yes, the clean-up will also cost money.”
Analysts: now with extra side-eye
The reaction was immediate and very much not a standing ovation:
- Bank of America cut its price target to $24 from $30 and warned visibility is still murky.
- Guggenheim said North America helped, but the bigger picture still looks rough.
- BTIG and Needham both chopped earnings estimates for fiscal 2027 and 2028.
- Stifel said it’s still too early to call a bottom, which is analyst speak for “don’t get cute.”
Why this matters
Nike is trading near new 52-week lows, and that’s what happens when the market stops believing the turnaround story on repeat. The company’s November investor day could matter if it gives the PACE plan more teeth, but for now investors are left waiting for proof that the swoosh can stop slipping on its own shoelace.
Big picture: Nike still has the brand, but Wall Street wants something rarer than a fresh pair of Jordans — a clean path back to growth.