Nike reported $11.2 billion in fiscal first quarter revenue, down 4%, and laid out a restructuring called Pace that includes further job cuts.
By the numbers: Revenue fell 4% to $11.2 billion, or 5% currency neutral, while gross margin expanded 60 basis points to 42.8%. Diluted earnings per share was $0.48 and net income slipped 2% to $0.7 billion.
- Converse was the weakest unit, down 28% to $263 million. NIKE Direct fell 8% to $4.1 billion, with digital down 13%.
Zoom in: NIKE Brand revenue of $11.0 billion fell on declines in Greater China and EMEA, partly offset by growth in North America. Wholesale held up best, down 1% to $6.8 billion.
What's next: Pace folds in the cost realignment announced in March 2026 and adds a modernized supply chain, a new campus in India and a realignment to three geographies. Nike expects about $2.5 billion in cumulative savings through fiscal 2031.
- The plan carries roughly $1.0 billion of pre-tax charges through fiscal 2031, mostly employee costs, with about $0.3 billion landing in fiscal 2027.
What they're saying: "We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we're taking deliberate actions to strengthen those businesses the right way for the long-term," said Elliott Hill, president and chief executive.
Why it matters: Nike is the largest sportswear company in the world and a bellwether for discretionary spending, so a guided full-year revenue decline signals a consumer trading down. Shares fell for a second straight day Friday, per CNBC.
