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Nike stock sinks as revenue misses estimates, expects to cut jobs
Yahoo Finance • • business
Key Points:
- Nike's stock dropped as much as 6% in after-hours trading following its fiscal first quarter results, which showed a 4% revenue decline to $11.21 billion, slightly below consensus estimates.
- Earnings per share fell to $0.48 from $0.49 a year ago, and the company forecasted a high single-digit revenue decline for fiscal 2027, despite a 60 basis point expansion in gross margin to 42.8%.
- CEO Elliott Hill announced operational changes including layoffs aimed at cost reduction and efficiency improvements, with decisions on impacted roles expected to begin in 2027 and beyond.
- Analysts view the results as part of a reset under Hill’s leadership, highlighting challenges in key areas like Greater China and Europe, and noting the need for Nike to return to growth and margin expansion.
- Nike faces ongoing challenges, including competition from retailers and former partners, recent high-profile endorsements losses, and a strategic shift under new CFO Dave Denton, marking a critical period for the company’s turnaround efforts.
