NIKE (NYSE:NKE) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

NIKE (NYSE:NKE) posted its quarterly earnings results on Thursday. The footwear maker reported $0.48 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.05, Zacks reports. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The business had revenue of $11.21 billion during the quarter, compared to the consensus estimate of $11.32 billion. During the same period in the previous year, the firm posted $0.49 earnings per share. NIKE’s revenue for the quarter 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 1.0%

Shares of NIKE stock traded down $0.35 during trading on Thursday, reaching $35.05. The stock had a trading volume of 102,245,988 shares, compared to its average volume of 23,445,039. The company has a market capitalization of $51.99 billion, a price-to-earnings ratio of 16.77, a P/E/G ratio of 2.02 and a beta of 1.10. The stock has a fifty day moving average price of $39.16 and a two-hundred day moving average price of $43.07. NIKE has a 52 week low of $35.02 and a 52 week high of $76.97. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40.

NIKE Dividend Announcement

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

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE reported fiscal first-quarter adjusted EPS of $0.48, exceeding the $0.44 analyst consensus. The company also highlighted progress in its performance business and introduced the “Pace” restructuring plan to accelerate growth. NIKE Fiscal 2027 First-Quarter Results
• Positive Sentiment: Demand for new products remains a potential bright spot: Nike’s first Caitlin Clark signature shoe, the Caitlin 1, was nearly sold out shortly after launch, supporting the company’s efforts to rebuild product momentum. Nike Caitlin Clark Shoes Nearly Sold Out
• Neutral Sentiment: NIKE is giving its China organization greater control over product and distribution decisions as it attempts to respond more effectively to local competitors. The initiative could improve execution, but its financial benefits are not yet evident. Nike China Local Reset
• Negative Sentiment: First-quarter revenue was $11.21 billion, below the $11.32 billion consensus estimate, reinforcing concerns about declining sales in China and weakness in the sneaker and Sportswear businesses. Nike Sales Challenges
• Negative Sentiment: Management expects fiscal 2027 revenue to decline by a high-single-digit percentage and issued EPS guidance of $1.15 to $1.35, substantially below analysts’ approximately $1.66 expectation. The outlook intensified concerns that the turnaround will take longer and that margin pressure will persist. Nike Projects Fiscal-Year Sales Decline
• Negative Sentiment: The stock was already trading near a multiyear low, while analysts cited weak sales, delayed recovery prospects and margin pressure as reasons for additional downside risk. Bank of America Nike Outlook

Wall Street Analysts Forecast Growth

Several research firms have weighed in on NKE. Guggenheim reissued a “buy” rating and issued a $60.00 target price (down from $74.00) on shares of NIKE in a research note on Wednesday, July 1st. China Renaissance dropped their price target on NIKE from $50.30 to $47.30 and set a “hold” rating on the stock in a research report on Thursday, July 2nd. Citigroup cut NIKE from a “neutral” rating to a “negative” rating in a report on Monday, September 14th. Wells Fargo & Company decreased their price objective on NIKE from $45.00 to $40.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 1st. Finally, Benchmark raised NIKE to a “hold” rating in a research note on Tuesday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-one have given a Hold rating and seven have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $46.62.

Insider Transactions at NIKE

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the transaction, the chief operating officer directly owned 104,862 shares in the company, valued at approximately $3,941,762.58. This trade represents a 3.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Philip McCartney sold 2,559 shares of NIKE stock in a transaction that occurred on Wednesday, September 9th. The shares were 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 approximately $2,936,568.39. This represents a 3.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,974 shares of company stock valued at $600,126 over the last three months. 1.10% of the stock is currently owned by corporate insiders.

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.