On October 2, Nike fell 7.43% in regular trading, trading at $32.55 per share, with turnover of $628 million. The decline followed the release of FY2027 first-quarter results, which revealed a revenue miss and a significantly reduced full-year outlook.

Nike reported Q1 revenue of $11.21 billion, below the consensus estimate of $11.33 billion and down approximately 4% year-over-year. While diluted EPS of $0.48 beat the $0.44 estimate, it still represented a 2% decline from the prior year. More critically, the company guided FY2027 revenue to decline by high-single digits, far worse than the roughly 2% drop analysts had expected, with adjusted EPS projected at $1.15 to $1.35 versus the Street estimate of $1.68.

Nike simultaneously unveiled a multi-year restructuring program codenamed PACE, expected to incur $1.3 billion in pretax charges while targeting approximately $2.5 billion in savings by FY2031, with layoffs set to begin next year. Greater China revenue declined for a ninth consecutive quarter with losses widening, and management acknowledged that recovery in Greater China, the Jordan brand, and sportswear categories will take additional time. Multiple Wall Street firms slashed price targets, with Morgan Stanley cutting to $27, Bank of America to $24, and UBS to $34. Short interest had reached a record 87 million shares ahead of the report, amplifying selling pressure.

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