Nike to release report amid expected sales decline — CNBC

In the United States, Nike is set to release its financial results for the first quarter of fiscal 2027 on Thursday after the close of the U.S. stock market. According to CNBC, analysts surveyed by LSEG forecast the company's revenue at $11.32 billion and earnings of 43 cents per share. The company is expected to report another quarter of declining sales.

Forecasts for the first half of the year

Former Nike Chief Financial Officer Matt Friend previously said that the company expects sales to show no significant changes in the first two quarters of fiscal 2027. Among the key challenges is declining sales in China, which had previously been one of the brand's profitable markets.

In the previous quarter, Nike's sales in China fell by 12%. Chief Executive Officer Elliott Hill told analysts in June that the company aims to regain its position in this market. In August, David Denton, who previously worked at Pfizer, became Nike's chief financial officer.

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Pressure in key markets

Last quarter, Nike's revenue in North America, its largest market, amounted to $4.83 billion. This was below Wall Street expectations of $4.88 billion, according to StreetAccount. At the same time, Nike said its gross margin in the first quarter would be slightly higher than in the same period of the previous year.

LSEG analysts expect Nike's total annual revenue to be approximately $45.31 billion, and second-quarter revenue to be about $11.79 billion. In the previous quarter, the company's results were supported by a tariff reimbursement of nearly $986 million, which added 52 cents to earnings per share.

Bank of America last week downgraded its rating on Nike shares from neutral to underperform, citing rising risks, category weakness and the likelihood of further weak results in China. Since the beginning of the year, Nike shares have lost more than 40% of their value.