Nike stock drops after Q1 revenue miss, China plunge
Nike stock fell roughly 4% in extended trading Thursday after the company posted fiscal first-quarter earnings that beat Wall Street estimates but missed on revenue, with China sales plunging 26% and a full-year outlook calling for a high-single-digit revenue decline in fiscal 2027.
Key Takeaways
- Nike reported EPS of 48 cents versus 43 cents expected, while revenue of $11.21 billion missed the $11.32 billion consensus.
- China revenue dropped 26%, weighing on overall sales that fell 4% year over year.
- Management guided for fiscal 2027 revenues to decline by a high-single-digit percentage.
- Nike stock is down more than 40% this year, with short interest near record highs ahead of the print.
The latest results add fresh pressure to a brand already deep into a multiyear turnaround. Investors tracking Net Worth & Wealth stories will find the miss on sales and the China weakness hard to ignore.
What did Nike report for fiscal Q1 2027?
According to CNBC, Nike earned 48 cents per share against a 43-cent LSEG consensus. Revenue came in at $11.21 billion, short of the $11.32 billion expected.
Net income was $712 million, down 2% from $727 million a year earlier. Gross margin of 42.8% edged past estimates of 42.4%. North America revenue of $5.13 billion slightly topped StreetAccount's $5.11 billion forecast.
Overall sales fell 4%. Nike said brand revenues were hit largely by sustained declines in China, where revenue plunged 26%.
Why does the full-year outlook matter for Nike stock?
Beyond the quarter, Nike said it expects revenues to decline by a high-single-digit percentage in fiscal 2027. That guidance frames the turnaround as still early, not a quick rebound.
The company has been sequencing improvements across parts of the business at different speeds. CNBC also noted that consumers face heavier macroeconomic pressure from geopolitical tensions and higher inflation, which can slow spending on discretionary brands.
Shares fell about 4% after the bell as traders digested the revenue miss, China weakness, and softer year-ahead sales outlook.
How bearish is Wall Street on Nike stock right now?
Sentiment was already grim heading into the report. Yahoo Finance reported short interest at an all-time high of 87 million shares, up from 55 million over the past year, with short interest as a percentage of float rising from under 3% to over 7%.
S3 Partners estimated shorts were sitting on about $1.4 billion in mark-to-market paper gains so far in 2026. Nike stock was already down roughly 27% since the May 28 earnings release and about 55% from its year-ago peak, trading near a 52-week low.
Evercore ISI's Michael Binetti had flagged further deceleration risk into fiscal 2027, citing retailer cancellations or negative order revisions for Spring 2027. Other recent setbacks include soccer star Kylian Mbappe ending his Nike partnership for On, Nike's removal from the S&P 100, and discounting concerns raised by Dick's Sporting Goods.
For investors, the beat on earnings per share did little to offset the sales shortfall and China plunge. Until revenue trends stabilize, Nike stock is likely to remain a high-scrutiny name among growth and consumer-discretionary watchers.