Event date: October 1, 2026. Nike reported fiscal 2027 first-quarter revenue of $11.2 billion for the three months ended August 31, down 4% from a year earlier. Nike Direct revenue fell 8% to $4.1 billion, while Greater China revenue dropped 22% to $1.18 billion on a reported basis and 26% after currency effects. Net income fell 2% to about $700 million, although gross margin improved 60 basis points to 42.8%.
The company also announced Pace, a multiyear operating-model transformation covering supply chains, geographic organization and further cost reductions. Nike's filing says the program is expected to produce about $1.0 billion in pretax charges, mainly employee severance and other employee-related costs, with roughly $300 million expected in fiscal 2027. Reuters reported that the company was planning job cuts and a steeper full-year sales decline than analysts expected, but Nike did not disclose a specific headcount target in the filing checked.
Reader question: Is a higher margin evidence that the turnaround is working? Not yet. Margins improved, but revenue, direct sales and China performance remain weak.