NIKE (NYSE:NKE) Posts Quarterly Earnings Results

NIKE (NYSE:NKE) posted its quarterly earnings results on Thursday. The footwear maker reported $0.48 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.05, Zacks reports. The firm had revenue of $11.21 billion for the quarter, compared to analyst estimates of $11.32 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The business’s quarterly revenue was down 4.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.49 EPS. NIKE updated its FY 2027 guidance to 1.150-1.350 EPS.

Here are the key takeaways from NIKE’s conference call:

• Fiscal 2027 outlook remains weak: Nike expects revenue to decline in the high-single-digit range, with EBIT falling faster than revenue and adjusted EPS projected at $1.15–$1.35, excluding roughly $0.15 per share of Pace-related costs.
• Greater China revenue fell 26% in Q1 and is expected to worsen over the balance of fiscal 2027 as Nike removes unprofitable digital distribution and resets inventory; management said the process will take multiple seasons and may pressure results into fiscal 2028.
• Nike Sportswear declined by low double digits and Jordan Brand revenue fell by mid-teens, reflecting weaker lifestyle demand, excess inventory, and deliberate reductions in Dunk and Jordan retro supply that will create additional near-term revenue pressure.
• The performance portfolio grew at a high-single-digit rate, led by double-digit growth in running, football, training, basketball, tennis, and golf; North America revenue also increased 2%, supported by performance products.
• Nike expects its Pace restructuring program to generate approximately $2.5 billion in savings, although most benefits are expected in fiscal 2029–2030; the company also reported a strong balance sheet with $8.4 billion in cash and short-term investments and reiterated its commitment to maintaining and eventually growing the dividend.

NIKE Trading Down 1.0%

Shares of NIKE stock opened at $35.05 on Friday. The business has a fifty day simple moving average of $39.04 and a two-hundred day simple moving average of $42.94. NIKE has a 1 year low of $35.02 and a 1 year high of $76.97. The company has a market capitalization of $51.99 billion, a price-to-earnings ratio of 16.77, a P/E/G ratio of 2.43 and a beta of 1.09. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36.

NIKE Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were issued a dividend of $0.41 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $1.64 annualized dividend and a yield of 4.7%. NIKE’s dividend payout ratio (DPR) is currently 78.47%.

Insider Activity at NIKE

In other news, EVP Philip McCartney sold 2,559 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $96,192.81. Following the completion of the sale, the executive vice president owned 78,121 shares in the company, valued at approximately $2,936,568.39. This trade represents a 3.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $42.05, for a total transaction of $204,657.35. Following the sale, the insider owned 57,436 shares of the company’s stock, valued at approximately $2,415,183.80. This represents a 7.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 14,974 shares of company stock valued at $600,126 in the last ninety days. Company insiders own 1.10% of the company’s stock.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE reported quarterly adjusted earnings of $0.48 per share, ahead of the $0.43 analyst consensus, although earnings were slightly below the $0.49 reported a year earlier. Nike Q1 Earnings Surpass Estimates
• Positive Sentiment: The company said its “Sport Offense” is producing progress in performance products, while the new Caitlin Clark signature shoe reportedly sold nearly out shortly after launch. These developments could support product momentum, though they are not yet large enough to offset broader weakness. Nike Caitlin Clark Shoes Nearly Sold Out
• Neutral Sentiment: NIKE announced “Pace,” a restructuring and execution plan intended to accelerate its turnaround. Management acknowledged that more work is needed in Sportswear, Jordan Brand and Greater China, suggesting potential benefits are longer term. NIKE Fiscal 2027 First-Quarter Results
• Negative Sentiment: Revenue totaled $11.21 billion, below the $11.32 billion consensus and down 4.3% year over year. Weakness in China and the sneaker business remains a central problem. Nike’s Troubles Are Mounting
• Negative Sentiment: Fiscal 2027 adjusted EPS guidance of $1.15 to $1.35 was well below the approximately $1.66 Wall Street expectation. NIKE also expects a high-single-digit percentage sales decline, implying that business conditions may worsen before improving. Nike Warns of High-Single-Digit Revenue Decline
• Negative Sentiment: Plans to cut additional jobs and the weaker forecast have increased doubts about the pace of CEO Elliott Hill’s turnaround, putting further pressure on the stock’s valuation and investor confidence. Nike Issues Bleak Forecast and Plans More Job Cuts

Analyst Ratings Changes

NKE has been the subject of several analyst reports. Raymond James Financial reissued a “market perform” rating on shares of NIKE in a research note on Tuesday. Piper Sandler reiterated a “neutral” rating and issued a $38.00 price target (down from $45.00) on shares of NIKE in a research note on Monday. Argus raised shares of NIKE to a “strong-buy” rating in a research report on Wednesday, July 15th. JPMorgan Chase & Co. restated a “sell” rating on shares of NIKE in a research note on Monday, August 31st. Finally, CICC Research dropped their target price on shares of NIKE from $58.00 to $44.80 and set a “neutral” rating on the stock in a report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty-one have issued a Hold rating and seven have assigned a Sell rating to the stock. Based on data from MarketBeat, NIKE has a consensus rating of “Hold” and a consensus target price of $46.62.

NIKE Company Profile

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.