Results
NIKE, INC.
REPORTS FISCAL 2027 FIRST QUARTER RESULTS
Management commentary
Sport Offense continued to drive momentum across priority sports
Taking actions to reposition NIKE Sportswear, Jordan Brand, and Greater China
Corporate events
Announces Pace, an operating model transformation to scale the success of the Sport Offense
Results
BEAVERTON, Ore., Oct. 1, 2026 — NIKE, Inc. (NYSE:NKE) today reported fiscal 2027 financial results for its first quarter ended August 31, 2026.
Management commentary
Executive Commentary
"The Sport Offense is driving measurable progress across our performance business, and we introduced Pace to help us accelerate and scale that momentum across NIKE," said Elliott Hill, President and Chief Executive Officer, NIKE, Inc. "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."
"We delivered first quarter results consistent with our expectations, supported by improved gross margin and disciplined cost management," said Dave Denton, Executive Vice President and Chief Financial Officer, NIKE, Inc. "As we move forward, we remain focused on strengthening the health of our product portfolio, improving productivity across the enterprise and allocating resources with discipline to support long-term shareholder value."
Overall Results
Results
First quarter revenues were $11.2 billion, down 4 percent on a reported basis and down 5 percent on a currency-neutral basis*
3Gross margin expanded 60 basis points to 42.8 percent
Selling and administrative expense decreased 3 percent to $3.9 billion
Diluted earnings per share was $0.48
First Quarter Income Statement Review
Revenues for NIKE, Inc. were $11.2 billion, down 4 percent on a reported basis and down 5 percent on a currency-neutral basis.
8NIKE Brand revenues were $11.0 billion, down 4 percent on a reported and currency-neutral basis, primarily due to declines in Greater China and EMEA, partially offset by growth in North America.
5NIKE Brand wholesale revenues were $6.8 billion, down 1 percent on a reported and currency-neutral basis, primarily due to declines in Greater China, partially offset by growth in North America.
NIKE Direct revenues were $4.1 billion, down 8 percent on a reported basis and down 9 percent on a currency-neutral basis, due to a 13 percent decrease in NIKE Brand Digital and a 5 percent decrease in NIKE-owned stores.
6Revenues for Converse were $263 million, down 28 percent on a reported and currency-neutral basis, due to declines across all territories.
4Gross margin expanded 60 basis points to 42.8 percent, primarily due to lower warehousing and logistics costs.
Selling and administrative expense decreased 3 percent to $3.9 billion.
Demand creation expense was $1.3 billion, up 5 percent, primarily due to higher brand marketing expense, reflecting higher investment in key sports events.
7Operating overhead expense was $2.7 billion, down 6 percent, primarily due to lower wage-related expense and lower other administrative costs.
The effective tax rate was 22.7 percent compared to 21.1 percent for the same period last year, primarily due to foreign tax audit settlements recognized in the current year.
Net income was $0.7 billion, down 2 percent, and Diluted earnings per share was $0.48.
Inventories for NIKE, Inc. were $7.8 billion, down 3 percent, primarily reflecting shifts in product mix.
Cash and equivalents and Short-term investments were $8.4 billion, down approximately $0.2 billion, as cash generated by operations was more than offset by cash dividends and capital expenditures.
Capital return
Shareholder Returns
NIKE has a strong track record of returns to shareholders.
In the first quarter, the Company returned approximately $610 million to shareholders through dividends, up 3 percent from the prior year.
Recent Developments
Corporate events
Pace is an operating model transformation to accelerate and scale the success of the Sport Offense.
The program includes and builds upon the previous cost realignment plan announced in March 2026.
Pace includes efforts to modernize NIKE's global supply chain, the establishment of a new campus in India to fuel its enterprise capabilities, a realignment to three geographies, and further streamlining of the organization to reduce costs.
Outlook
2NIKE expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion of pre-tax charges, primarily consisting of employee-related costs, through fiscal 2031, in addition to approximately $0.3 billion of severance costs recognized in fiscal 2026.
NIKE expects approximately $0.3 billion to be recognized in fiscal 2027.
Outlook
1Revenues are expected to decline high-single digits in fiscal 2027 .
Effective tax rate for fiscal 2027 is expected to be in the mid-20 percent range, subject to changes in earnings mix and discrete tax items.
Adjusted Diluted earnings per share** is expected to be in the range of $1.15 to $1.35, which excludes approximately $0.15 of restructuring expenses related to Pace for fiscal 2027.
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