Companies

Nike posts first-quarter revenue decrease

Oct 2, 2026 United States

The US-based sportswear company reported a decrease in revenue in the first quarter, as it advances its Pace transformation programme to streamline operations and improve efficiency

“We delivered first quarter results consistent with our expectations, supported by improved gross margin and disciplined cost management. As we move forward, we remain focused on strengthening the health of our product portfolio, improving productivity across the enterprise and allocating resources with discipline to support long-term shareholder value”, said Dave Denton, Executive Vice President and Chief Financial Officer of Nike.

First-Quarter Results

In the first quarter of the 2027 financial year, which ended on the 31^st of August, the company’s revenue amounted to 11.2 billion US dollars. This reflects a 4% decrease on a reported basis and a 5% decrease on a currency-neutral basis, compared to the same period of the previous financial year.

During the period, the Nike brand generated 11.0 billion US dollars, which is a 4% decrease on both a reported and currency-neutral basis compared to the same quarter a year ago. This was mainly due to declines in Greater China and EMEA, which were partially offset by growth in North America.

As illustrated below, Nike’s brand footwear revenue was down by 6% year-on-year, totalling 7.0 billion US dollars, and its equipment revenue was down by 3%, totalling 611 million US dollars, on both a reported and currency-neutral basis. Apparel was the bright spot, with a 2% year-on-year growth to 3.4 billion US dollars.

Meanwhile, Converse continues to perform poorly, generating first-quarter revenue of 263 million US dollars. This represents a 28% decrease on a reported and currency-neutral basis compared to the first quarter of the 2026 financial year, with declines across all territories.

During the first quarter of the current financial year, Nike’s gross margin expanded by 60 basis points year-on-year to reach 42.8%, primarily due to reduced warehousing and logistics costs, which supported improved profitability.

The company’s SG&A expenses fell by 3% during the quarter to 3.9 billion US dollars, reflecting tighter cost control. Operating overheads also fell, by 6% year-on-year, totalling 2.7 billion US dollars. This helped offset the 5% increase in demand creation expenses to 1.3 billion US dollars, as Nike increased investment in brand marketing around key sporting events.

In the first quarter of the 2027 financial year, Nike reported a net income of 0.7 billion US dollars, down by 2% compared to the same period of last year, and diluted earnings per share stood at 0.48 US dollars.

Outlook

“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”, highlighted Elliott Hill, President and Chief Executive Officer.

Nike’s Pace transformation programme aims to streamline operations and support its Sport Offence strategy through supply chain modernisation, geographic realignment, and organisational simplification.

The company expects to save approximately 2.5 billion US dollars cumulatively through the full-year 2031, alongside around 1 billion US dollars in pre-tax charges, including around 0.3 billion US dollars expected in the full-year 2027. Part of the savings are likely to be reinvested in the business.

For this fiscal year, the company expects revenue to decline by a high single-digit percentage. Full-year adjusted diluted earnings per share are expected to be in the range of 1.15 to 1.35 US dollars, excluding approximately 0.15 US dollars of restructuring expenses related to Pace.

Image Credits: threads.com

Illustration: Sofia Pádua

United States Companies Nike Quarter Results Results Sportswear