Nike’s fiscal first-quarter earnings beat Wall Street expectations, but the sportswear company’s revenue fell short of forecasts and its shares dropped about 4% in extended trading.
The company said it expects revenue to decline by a high-single-digit percentage in fiscal 2027, as it continues to work through a turnaround plan.
Nike reported earnings per share of 48 cents for the quarter, compared with analysts’ expectation of 43 cents. Revenue came in at 11.21 billion dollars, below the 11.32 billion dollars forecast.
Net income fell 2% to 712 million dollars, from 727 million dollars a year earlier. Overall revenue declined 4%.
The company said Nike brand revenue was affected largely by continued weakness in China, where revenue fell 26%.
Revenue in North America reached 5.13 billion dollars, slightly ahead of the 5.11 billion dollars expected. Nike’s gross margin was 42.8%, compared with an estimate of 42.4%.
The retailer has been managing a turnaround focused on improving different parts of the business at different rates according to priority. It also said consumers had come under greater pressure from geopolitical tensions and higher inflation, contributing to slower spending.
Nike shares have fallen more than 40% this year.
