Nike stock drops as revenue falls short of estimates, China sales plunge again — SkimNews
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- Nike reported fiscal first-quarter earnings of 48 cents per share, beating Wall Street's estimate of 43 cents, even as net income dipped 2% year-over-year to $712 million.
- Nike generated $11.21 billion in revenue, falling short of the $11.32 billion analysts expected, with the shortfall driven by a 4% overall revenue decline.
- Nike saw its China business revenue drop 26%, marking another quarter of sustained declines in the key market despite broader turnaround efforts.
- Nike maintained North America revenue at $5.13 billion, slightly exceeding StreetAccount's $5.11 billion estimate, showing regional resilience.
- Nike reported a gross margin of 42.8%, above the 42.4% analysts anticipated, indicating continued pricing power or cost management despite macroeconomic pressures.
- Nike projected a high-single-digit percentage revenue decline for fiscal 2027, signaling ongoing challenges in restoring growth despite near-term margin strength.
- Nike shares fell 4% in extended trading following the earnings release, extending a year-long decline that has wiped more than 40% off its stock value.
Why it matters: Nike beat on profit but missed on sales, and the 26% China drop shows the turnaround isn't gaining traction where it's needed most. With a projected revenue decline through 2027, investors are pricing in prolonged weakness despite margin resilience, hitting shareholder value hard.
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