NIKE, Inc. (NKE) Q1 FY2027 earnings

Reported results

• Revenues were $11.2 billion, down 4% on a reported basis and down 5% on a currency-neutral basis
• Gross margin expanded 60 basis points to 42.8%, primarily due to lower warehousing and logistics costs
• Diluted earnings per share (GAAP) was $0.48, down from $0.49 in the prior year
• Net income was $0.7 billion, down 2% from $0.727 billion in the prior year
• Selling and administrative expense decreased 3% to $3.9 billion
• Nike Direct revenues decreased 8% on a reported basis and 9% on a currency-neutral basis

Guidance

• Revenues 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
• Adjusted Diluted earnings per share (non-GAAP) is expected to be in the range of $1.15 to $1.35 for fiscal 2027, which excludes approximately $0.15 of restructuring expenses related to Pace

Notes

Pace is an operating model transformation program announced in October 2026. Nike expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion of pre-tax charges (primarily employee-related costs) and approximately $0.3 billion of severance costs through fiscal 2031. Approximately $0.3 billion in charges expected in fiscal 2027. The effective tax rate increased from 21.1% to 22.7%, primarily due to foreign tax audit settlements. EBIT and EBIT margin are non-GAAP measures. Currency-neutral comparisons are non-GAAP measures.

Price and volatility reaction

The stock moved -3.6% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -17.1 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-01 (8-K, Item 2.02). Read the original filing on sec.gov.