Nike Q1 FY2027 Revenue Falls to $11.21 Billion, Misses Estimates; Greater China Down 22% as Company Unveils 'Pace' Program

Nike reported fiscal first-quarter 2027 revenue of $11.21 billion, below the $11.32 billion analysts had expected, according to CNBC, which cited LSEG consensus estimates. The company also disclosed a new multi-year cost and restructuring initiative called Pace and guided to a high-single-digit revenue decline for fiscal 2027, according to Nike's own disclosures reported by Stock Titan.

The revenue shortfall versus consensus was $0.11 billion, or about 1.0% below expectations (our calculation: $11.21B minus $11.32B, divided by $11.32B). Seeking Alpha reported that the combination of the revenue miss, mixed quarterly results and a disappointing near-term outlook caused shares to decline, though the specific magnitude of the after-hours move was not detailed in the available reporting.

Segment Performance: Greater China Remains the Weak Spot

According to the company's segment disclosures carried by Stock Titan, North America revenue rose 2% year over year to $5.13 billion from $5.02 billion, with footwear up 1%, apparel up 6% and equipment down 8%. Europe, Middle East & Africa revenue fell 5% to $3.18 billion from $3.33 billion, driven by an 11% decline in footwear that was partly offset by a 5% gain in apparel.

Greater China was the steepest decliner among reporting regions, with total revenue down 22% to $1.18 billion from $1.51 billion. Footwear in the region fell 22% (down 26% on a currency-neutral basis), apparel dropped 23% (down 27% currency-neutral), and equipment declined 15% (down 18% currency-neutral). Asia Pacific & Latin America revenue slipped 2% to $1.46 billion, while Converse revenue fell 28% to $263 million from $366 million.

Profitability followed a similar pattern. Segment EBIT for North America rose 3% to $1.17 billion, and EMEA EBIT was roughly flat, down 1% to $728 million. Greater China EBIT fell 34% to $248 million from $377 million, and Converse EBIT dropped 36% to $25 million. Asia Pacific & Latin America EBIT declined 7% to $324 million.

Using the company's own segment totals as carried by Stock Titan, combined revenue across the five reporting units fell from $11.72 billion in the prior-year quarter to $11.21 billion this quarter, a decline of roughly 4.3% (our calculation: sum of North America, EMEA, Greater China, Asia Pacific & Latin America and Converse revenue for each period, $11,209 million versus $11,719 million, divided by $11,719 million), consistent with the approximately 4% total revenue decline reported by Stock Titan.

Gross Margin Improved Even as Top Line Softened

Despite the revenue decline, gross margin expanded 60 basis points to 42.8%, which the company attributed primarily to lower warehousing and logistics costs, per Stock Titan's reporting. Selling and administrative expense fell 3% to $3.9 billion, as a 6% reduction in operating overhead to $2.7 billion more than offset a 5% increase in demand creation spending to $1.3 billion, which Nike said reflected higher brand marketing investment tied to major sports events.

Inventories stood at $7.8 billion, down 3% year over year, which the company said primarily reflected shifts in product mix. Cash and short-term investments totaled $8.4 billion, down about $0.2 billion, as operating cash generation was more than offset by dividends and capital expenditures. Nike returned approximately $610 million to shareholders through dividends in the quarter, up 3% from a year earlier, with the per-share dividend rising to $0.410 from $0.400.

The Pace Program: $2.5 Billion in Targeted Savings Through Fiscal 2031

Nike announced Pace on October 1, 2026, describing it as a multi-year operating model transformation that builds on a cost realignment plan first announced in March 2026. Per the company's disclosures, Pace includes modernizing Nike's global supply chain, establishing a new campus in India, realigning the company into three geographies, and further streamlining the organization to reduce costs.

Nike said it expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, before any future reinvestment. Achieving those savings is expected to require roughly $1.0 billion in pre-tax charges, primarily employee severance and other employee-related costs, in addition to about $0.3 billion in severance already recognized in fiscal 2026 under the earlier March 2026 plan. The company said approximately $0.3 billion of the new charges is expected to be recognized in fiscal 2027, with the remainder through fiscal 2031.

Nike cautioned that the majority of the charges are expected to result in future cash expenditures and that all charges will be substantially incurred by the end of fiscal 2031, subject to local law requirements in the various jurisdictions where the program will be implemented. The company explicitly flagged that the savings, charges and cash expenditure estimates are subject to a number of assumptions and that actual results may differ, possibly materially.

Fiscal 2027 Guidance Points to Further Declines

Nike's formal outlook calls for revenue to decline by a high-single-digit percentage in fiscal 2027. The company guided to adjusted diluted earnings per share of $1.15 to $1.35, a figure that excludes approximately $0.15 of restructuring expense tied to Pace. Nike also projected an effective tax rate in the mid-20% range for the fiscal year, subject to changes in earnings mix and discrete tax items.

Management Commentary

CEO Elliott Hill said, according to the company's statement carried by Stock Titan, "We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we're taking deliberate actions to strengthen those businesses the right way for the long-term." Per the same statement, CFO Dave Denton said the quarter's results were "consistent with our expectations, supported by improved gross margin and disciplined cost management." Bottom line, and as an interpretation of the figures above: the disclosures show margin and cost levers working — gross margin up 60 basis points to 42.8% and selling and administrative expense down 3% — while demand pressure persists, with Nike itself guiding to a high-single-digit revenue decline for fiscal 2027 and flagging that its Pace savings, charge and cash-expenditure estimates may differ, possibly materially, from actual results.