Nike is Nike struggling with weaker sales, another cost-cutting programme and growing pressure across key markets. The sportswear giant reported first-quarter fiscal 2027 revenue of $11.2 billion, down 4% from a year earlier, while Nike Direct revenue declined 8% and digital sales dropped 13%.
The company expects revenue to fall by a high-single-digit percentage during fiscal 2027, adding to concerns about the pace of its turnaround.
Nike announces another cost-cutting programme
Nike has launched a new operating transformation called Pace, which is expected to generate around $2.5 billion in cumulative savings through fiscal 2031. The programme includes restructuring and employee-related costs.
The company expects approximately $1 billion in pre-tax charges through fiscal 2031 and another $300 million in severance costs during fiscal 2027. Nike has not specified how many additional jobs could be eliminated under the latest programme.
The changes are intended to simplify operations, improve productivity and direct more resources towards performance sports.
China, digital and Jordan remain under pressure
Nike's latest results show weakness across several important parts of the business. Greater China revenue fell 22% on a reported basis and 26% on a currency-neutral basis. Nike Brand footwear revenue declined 6%, while Converse revenue plunged 28%.
Jordan Brand also remains a concern, with revenue falling by a mid-teens percentage. Nike has acknowledged that some retro products were being supplied too heavily and plans to reduce the volume and frequency of selected launches.
There were some positive indicators. Gross margin improved to 42.8%, while selling and administrative expenses fell 3%. North America also recorded growth.
Competition adds to Nike's challenges
Nike is facing increased competition from established brands such as Adidas and Puma as well as newer companies including On and Hoka. These brands have gained greater visibility, particularly in running.
Nike has also experienced changes among major athlete partnerships, adding to the pressure around its position in global sports marketing.
Its stock performance reflects the broader concerns. Nike shares ended 2025 at $63.71 and had fallen roughly 45% by October 1, when they closed at $35.15.
Nike remains one of the world's largest sportswear companies, but falling sales, weakness in China, changes to Jordan and stronger competition have created a significant turnaround challenge. The company is now attempting to convert its powerful global brand into renewed growth.
Relevant link: Nike
Conversation
Be kind and stay on topic. Comments are moderated; abuse, spam and personal attacks are removed. Report a problem