Nike Earnings Preview: Can the Turnaround Finally Gain Traction?
DailyFX Real Time News 2026-09-30 11:28:12
Context: Nike is set to report its fiscal first-quarter 2027 results on October 1, with investors eagerly awaiting signs that CEO Elliott Hill's turnaround strategy is gaining traction. The sportswear giant has struggled with declining sales, and its shares have fallen sharply this year, trading close to multi-year lows. The company has spent almost two years trying to reset its product range, rebuild wholesale relationships, and refocus on its core sporting franchises.
Key Facts
- Nike reports its fiscal Q1 2027 results on October 1, with analyst consensus predicting revenue of $11.32bn, down 3% year-on-year, and adjusted earnings per share of $0.43, down 11% year-on-year.
- Nike's Greater China revenue fell by double digits in the fourth quarter, contributing to the company's broader sales decline, and investors will be watching to see if the decline is stabilising.
- The company's gross margin jumped 890 basis points to 49.2% in the fourth quarter, although this included a one-off tariff-related benefit, and management expects margins to improve as it reduces excess inventory and controls costs.
- Nike ended fiscal 2026 with inventory of $7.5bn, broadly unchanged from a year earlier, and investors will be watching inventory levels, markdowns, and full-price sell-through closely.