NIKE (NYSE:NKE) Issues Earnings Results

NIKE (NYSE:NKE) issued its quarterly earnings results on Thursday. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.05, Zacks reports. NIKE had a net margin of 6.74% and a return on equity of 16.18%. The company had revenue of $11.21 billion during the quarter, compared to analyst estimates of $11.32 billion. During the same quarter last year, the business posted $0.49 EPS. NIKE’s quarterly revenue was down 4.3% compared to the same quarter last year. 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 Stock Down 3.6%

NYSE:NKE opened at $33.88 on Friday. The firm has a market capitalization of $50.27 billion, a P/E ratio of 16.29, a PEG ratio of 2.42 and a beta of 1.09. The company’s fifty day moving average price is $38.88 and its 200-day moving average price is $42.88. 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 has a 1-year low of $31.97 and a 1-year high of $74.78.

NIKE Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 1st were issued a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 4.8%. The ex-dividend date was Tuesday, September 1st. NIKE’s dividend payout ratio is 78.47%.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE reported fiscal Q1 EPS of $0.48, above the $0.43 analyst consensus. The company also retains a strong balance sheet, with approximately $8.4 billion in cash and short-term investments, while its dividend yield is approaching 5%. NIKE Posts Earnings Results
• Positive Sentiment: Some analysts see the selloff as an opportunity. Freedom Broker upgraded NKE from “sell” to “buy” with a $51 price target, while BTIG maintained a “buy” rating with a $50 target. Bernstein called the stock “de-risked” following the earnings release. Bernstein says Nike stock is de-risked
• Neutral Sentiment: NIKE is launching the Pace restructuring program, targeting approximately $2.5 billion in savings. Management said the plan is intended to simplify operations and support performance categories, but implementation will include further job cuts likely extending into 2027. NIKE fiscal 2027 first-quarter results
• Neutral Sentiment: The company’s dividend appears supported by its liquidity and history of 24 consecutive years of increases, although a higher yield also reflects the stock’s substantial decline and investors’ concerns about future earnings.
• Negative Sentiment: Fiscal Q1 revenue fell 4.3% year over year to $11.21 billion, below the $11.32 billion consensus estimate. Weakness in Greater China, Sportswear and Jordan continued to weigh on sales, while competition and changing consumer preferences are pressuring the brand. Nike plans more job cuts and forecasts revenue drop
• Negative Sentiment: Management expects fiscal 2027 revenue to decline by a high-single-digit percentage and provided EPS guidance of $1.15–$1.35, well below the roughly $1.66 analyst consensus. The outlook suggests Nike’s turnaround may take longer and be more costly than investors expected. Nike shares fall after weak outlook and layoffs
• Negative Sentiment: Several firms reduced price targets, including Citi to $32 and JPMorgan to $33, with neutral or underweight ratings. Zacks also placed NKE on its Strong Sell list, reinforcing concerns about margin pressure, China weakness and delayed recovery.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on NKE. Royal Bank Of Canada dropped their price objective on NIKE from $45.00 to $40.00 and set a “sector perform” rating on the stock in a report on Tuesday. BTIG Research dropped their target price on NIKE from $55.00 to $50.00 and set a “buy” rating for the company in a report on Friday. Weiss Ratings raised shares of NIKE from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, July 17th. Robert W. Baird cut their price objective on NIKE from $44.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Evercore decreased their price objective on shares of NIKE from $46.00 to $28.00 in a report on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-two have assigned a Hold rating and eight have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $42.12.

Insider Activity at NIKE

In related news, insider Amy Montagne sold 4,867 shares of NIKE stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the sale, the insider directly owned 57,436 shares in the company, valued at approximately $2,415,183.80. The trade was a 7.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Philip McCartney sold 2,559 shares of NIKE stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $96,192.81. Following the completion of the sale, the executive vice president directly owned 78,121 shares in the company, valued at $2,936,568.39. This represents a 3.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,974 shares of company stock worth $600,126 over the last three months. Company insiders own 1.10% of the company’s stock.

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.