NIKE Reports $11.2 Billion Revenue in Q1 Fiscal 2027, Down 4% Year-Over-Year

NIKE, Inc. reported revenues of $11.2 billion for the first quarter of fiscal 2027, a decrease of 4% compared to $11.7 billion in the same period last year. The company's net income for the quarter was $712 million, down 2% from $727 million in the prior year, resulting in diluted earnings per share of $0.48, compared to $0.49 a year earlier. The decline in revenue was attributed to lower sales in key markets, particularly Greater China, which saw a significant drop in demand, alongside a decrease in direct-to-consumer sales.

In terms of operational performance, NIKE's gross profit fell to $4.8 billion, down from $4.9 billion, although the gross margin improved by 60 basis points to 42.8%, primarily due to reduced warehousing and logistics costs. The company reported a 5% increase in demand creation expenses, reflecting higher investments in brand marketing and sports marketing initiatives. Total selling and administrative expenses decreased by 3% to $3.9 billion, driven by lower operating overhead costs.

Geographically, NIKE's North America segment saw a 2% increase in revenues, while Europe, the Middle East, and Africa (EMEA) experienced a 5% decline. Greater China reported a significant 22% drop in revenues, reflecting ongoing challenges in that market, including declining store traffic and increased promotional activity. The Asia Pacific and Latin America segment also faced a slight revenue decrease of 2%. The company’s Converse brand continued to struggle, with revenues down 28% year-over-year.

As of August 31, 2026, NIKE's inventories increased by 5% to $7.8 billion, attributed to shifts in product mix. The company also reported a cash flow from operations of $135 million for the quarter, a decrease from $222 million in the same period last year. NIKE returned approximately $610 million to shareholders through dividends during the quarter. The company has paused its share repurchase program but retains the capacity to resume it depending on market conditions.

Looking ahead, NIKE is implementing a multi-year enterprise program called "Pace," aimed at enhancing productivity and reducing costs. This program is expected to incur pre-tax charges of approximately $1 billion, with anticipated cumulative savings of around $2.5 billion through fiscal 2031. The company remains focused on navigating external challenges, including geopolitical dynamics and fluctuating currency exchange rates, while striving to maintain its leadership position in the athletic footwear and apparel market.