Nike stock: fiscal 2027 first-quarter revenue falls as Pace transformation begins

NIKE, Inc. reported lower revenue but improved gross margin for its fiscal 2027 first quarter ended August 31, 2026. The company also announced Pace, an operating-model transformation focused on supply-chain modernization, geographic realignment and organizational streamlining, according to Nike.

Revenue declines as margin improves

Fiscal first-quarter revenue was $11.2 billion, down 4 percent on a reported basis and 5 percent on a currency-neutral basis. Gross margin expanded 60 basis points to 42.8 percent, while selling and administrative expense decreased 3 percent to $3.9 billion. Diluted earnings per share was $0.48, and net income was $0.7 billion, down 2 percent, Nike said.

Pace targets savings through fiscal 2031

Nike said Pace includes efforts to modernize its global supply chain, establish a new campus in India, realign the company into three geographies and further streamline the organization. The company expects approximately $2.5 billion in cumulative savings through fiscal 2031 and approximately $1.0 billion in pre-tax charges over that period, in addition to approximately $0.3 billion of severance costs recognized in fiscal 2026, according to Nike's release.

Fiscal 2027 outlook

Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage. Its adjusted diluted EPS outlook is $1.15 to $1.35, excluding approximately $0.15 of restructuring expenses related to Pace, the company said in its October 1, 2026 results release.