Topline
Nike’s stock fell to its latest 13-year low Thursday, tumbling nearly 4% in after-hours trading after reporting first quarter earnings that revealed underperforming revenue and a declining income outlook.
A Nike logo sign is seen on a store in New York City, United States, on August 6, 2026.
Photo by Marcin Golba/NurPhoto via Getty Images
Key Facts
Nike shares were down 3.8% to $33.80 as of just after 5 p.m. EDT, their lowest point since September 2013.
Nike reported first quarter revenue of $11.2 billion, short of consensus estimates of $11.3 billion, mainly attributing the drop to revenue declines in Greater China, Europe, the Middle East and Africa.
Earnings per share of $0.48 topped expectations after dropping from $0.49 the year prior.
Nike said in its outlook it expects revenues to decline by high-single digits in fiscal 2027.
Nike Planning Layoffs
Nike Pace, the company’s new operating model and cost reduction program announced Thursday, will focus on accelerating Nike’s supply chain modernization efforts, organizing Nike’s leadership into three international markets, establishing a new campus in India and making changes to the company’s workforce. “This work will result in fewer roles across Nike,” Nike chief Elliott Hill said in a statement, adding, “Decisions about impacted roles related to this work will begin in calendar year 2027 and beyond.”
Key Background
Nike’s stock peaked in 2021, reaching as high as $179 in intraday trading. Shares have fallen 76% since then as the company made major changes to its sales channels, reducing ties with retailers and e-commerce companies like Foot Locker, Amazon, Big Five Sporting Goods and Urban Outfitters. Shoppers began looking to competitors like Hoka, On Running, Adidas and Puma. Nike has also lost ground on the Chinese market, reporting multiple revenue dropoffs in the country since 2021.
Further Reading
Nike Shares Edge Lower After Converse Ad Controversy, Mbappé Exit (Forbes)
Leave a comment