Nike (NYSE: NKE) shares fell 10.25% to $31.55 in premarket trading Friday after the sportswear company reported weaker-than-expected fiscal first-quarter revenue and forecast a much steeper full-year sales decline than Wall Street had expected.
The company also disclosed that its planned Dunk pullback reduced Sportswear revenue by roughly $200 million during the quarter.
Nike shares slipped 0.7% during Thursday’s regular session to close at $35.15. The stock then dropped about 8.5% in extended trading after the company released its results and outlook.
Nike said full-year revenue is expected to decline in the high-single-digit percentage range, compared with an average analyst estimate of about a 2% decline. The company also guided adjusted diluted earnings per share to $1.15 to $1.35, below a consensus estimate of roughly $1.66 to $1.67.
By comparison, the stock had declined just 0.7% during Thursday’s regular session before Nike released earnings.
Separately, Nike Tokenized Stock (Ondo), or NKEon, was trading at $32.45, down 10.09% over the past 24 hours, according to CoinMarketCap. NKEon is a tokenized product offering economic exposure to Nike shares. Its 24-hour performance is not directly comparable to NKE’s regular-session or after-hours move.
Quarterly Sales Missed as China and Sportswear Remained Under Pressure
Nike reported fiscal Q1 revenue of $11.213 billion, down 4% from $11.720 billion a year earlier and below the roughly $11.32 billion analysts expected. Diluted earnings per share were $0.48, compared with a consensus estimate near $0.43.
Greater China remained one of the largest operating pressures. Revenue in the region fell 22% on a reported basis and 26% currency-neutral to $1.18 billion.
Nike Direct revenue declined 9% currency-neutral, while management said Nike Sportswear, Jordan Brand, and Greater China remained significant drags on consolidated results.
Sportswear declined at a low-double-digit rate on a currency-neutral basis and accounted for just under half of quarterly revenue. Jordan Brand’s currency-neutral revenue fell by a mid-teens percentage, while the brand represented about 13% of Nike’s global business.
Those pressures contrasted with Nike’s performance portfolio, which grew at a high-single-digit currency-neutral rate. Management said, however, that the performance business was not yet large enough to offset weakness elsewhere.
Notably, part of Nike’s current revenue pressure also reflects planned reductions in product supply and marketplace exposure, according to management’s earnings-call commentary.
Why Nike Is Cutting Sportswear and Jordan Supply
The roughly $200 million Sportswear impact came as Dunk revenue fell by nearly half year over year on a currency-neutral basis.
Nike characterized the Dunk reduction as planned and said the supply cuts were intended to improve marketplace health and support more full-price selling.
The corrective effort also extends to Jordan Brand. CEO Elliott Hill said selected retro Jordan launches will become smaller and less frequent after Nike put too much of its iconic retro product into the market.
Nike said upcoming wholesale orders were affected because some aging, high-volume Sportswear styles did not clear at the expected pace, leaving excess inventory for the company and its retail partners to work through.
Nike expects related supply reductions to weigh on reported revenue through the rest of fiscal 2027 and into fiscal 2028. More broadly, CFO Dave Denton said the corrective work covers Sportswear, Jordan Brand, and Greater China.
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