---
title: "Nike's Shares Decline on Disappointing Sales Figures"
url: https://noti.group/nike-s-shares-decline-on-disappointing-sales-figures/
language: en
publisher: "Noti Group"
section: "Business"
published: 2026-10-01T21:34:44.000Z
updated: 2026-10-01T22:24:43.421Z
id: e5b31924-4e08-45e5-854a-6223b31a422f
source: "CNBC https://www.cnbc.com/2026/10/01/nike-nke-q1-2027-earnings.html"
attribution: "Link to https://noti.group/nike-s-shares-decline-on-disappointing-sales-figures/ and name Noti Group when you quote or summarize this story."
---

# Nike's Shares Decline on Disappointing Sales Figures

The company posted disappointing sales figures for its fiscal first quarter, with quarterly revenues falling 4% to $11.21 billion.

Nike's shares took a hit on Thursday as the sports apparel giant posted disappointing sales figures for its fiscal first quarter.

The company announced a restructuring plan that will involve layoffs starting next year, as part of an effort to improve its performance and competitiveness in key markets. This move comes amid sustained declines in China business, where revenue dropped by 26% compared to last year. The impact was felt across various product lines, including Nike Sportswear and Jordan Brand.

Nike's quarterly revenues fell 4% to $11.21 billion, with the decline largely attributed to the struggles in China. The company reported net income of $712 million for the period, down 2% from $727 million the previous year. Despite some positive signs in North America, where revenue exceeded expectations, Nike's overall performance was marred by disappointing sales.

The sports apparel giant also offered a cautious outlook for its full-year performance, predicting revenues to decline by a high-single digit percentage in fiscal 2027. Adjusted earnings per share are expected to be between $1.15 and $1.35. This forecast suggests that Nike is bracing for further challenges ahead.

CEO Elliott Hill acknowledged the difficulties facing the company, stating that it is "moving with urgency" to address its business issues in China. He emphasized that while some progress has been made, more work needs to be done to restore the company's competitiveness in key markets and product lines.

Nike's sportswear segment has experienced a decline in revenue, falling by a low-double digit percentage in the quarter. This drop is significant, considering it accounts for nearly half of the company's overall revenue. The slump is attributed to a lack of energy in the lifestyle space, which is impacting traffic and consumer spending.

The company's leadership acknowledges that consumers are being cautious with their purchases, but emphasizes the need for innovation and creativity in sportswear to drive growth. As the industry leader, Nike recognizes its responsibility to revitalize its product lines and stay ahead of the competition.

As part of a broader restructuring plan, Nike aims to position itself for long-term growth through supply chain modernization and organizational changes. The company will establish three geographic regions: the Americas, Asia Pacific and Greater China, and Europe, the Middle East and Africa. This reorganization is expected to result in layoffs beginning in 2027.

Nike has already announced two rounds of layoffs this year, with a third round now underway as part of its restructuring efforts. The company's leadership acknowledges the uncertainty created by these job cuts, but emphasizes that they are necessary for Nike's future success and competitiveness in key markets.

As part of its restructuring efforts, Nike is expected to reap significant cost savings through a strategy dubbed Pace. The initiative aims to deliver approximately $2.5 billion in savings by fiscal 2031, which will help the company streamline operations and improve productivity.

Nike's leadership emphasized that Pace is designed to enhance decision-making capabilities, allowing the company to capitalize on market opportunities more efficiently. By streamlining processes, Nike can allocate resources more effectively, investing in innovation and brand development while serving athletes worldwide.

The restructuring efforts come as Nike faces increased macroeconomic pressure, with geopolitical tensions and higher inflation contributing to slower consumer spending. With shares plummeting over 40% this year, the company's turnaround plan is crucial for its future success.

---
Source: [CNBC](https://www.cnbc.com/2026/10/01/nike-nke-q1-2027-earnings.html)  
Published by Noti Group: https://noti.group/nike-s-shares-decline-on-disappointing-sales-figures/