Nike Inc

NIKE reported first-quarter fiscal 2027 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 43 cents, but revenues of $11.2 billion declined 4% year over year and missed expectations, sending shares down 2.2% since the Oct. 1, 2026 after-market-close release. North America revenues rose 2% to $5.1 billion, while EMEA fell 5% to $3.18 billion and Greater China dropped 22% on a reported basis to $1.2 billion, or 26% currency-neutral, lagging the consensus estimate of $1.3 billion. Asia Pacific & Latin America revenues dipped 2% to $1.5 billion but were flat excluding currency changes. NIKE introduced Pace, an operating-model transformation expected to generate about $2.5 billion in cumulative savings through fiscal 2031, and guided fiscal 2027 revenues to decline at a high-single-digit rate with adjusted earnings per share of $1.15-$1.35, excluding about 15 cents of Pace-related restructuring impact. The Zacks Consensus Estimate has fallen 16.8% to $1.34 per share for fiscal 2027 and 16% to $1.78 for fiscal 2028 over the past seven days, and NIKE carries a Zacks Rank #5 (Strong Sell).

Nike changed its reporting structure in its latest 10Q, moving from four regions to three and reducing regional sales disclosure, including pulling back on comparable store sales data across markets. China performance will now be less visible to investors, even as that geography remains a key focus area. The reduced transparency weakens one pillar of the Nike Narrative, which is the need to monitor revenue pressure and margin strain in key territories like Greater China. With first quarter 2026 sales of US$11,213 million and management guiding to a high single digit revenue decline for fiscal 2027, tighter disclosure on regional trends makes it harder to judge whether the portfolio shift toward sport performance and the clean up of classic footwear lines is easing those pressures. The critical test from here is the next few quarterly filings and conference calls, especially how Nike breaks out China within its three region structure and explains any changes in digital demand, inventories and markdowns in that market relative to the guided fiscal 2027 revenue decline.

Nike reported a 5% currency-neutral revenue decline to $11.2 billion in its latest quarter, with Greater China down 26% and Nike Sportswear and Jordan remaining major drags, while its performance business grew at a high-single-digit rate. CEO Elliott Hill is steering Nike back toward sport, with running, football, training, basketball, tennis and golf all showing growth, and the company nearly tripling its share of the max-cushioning category over the past year. Nike Sportswear, which accounted for just under half of quarterly revenue, fell by low double digits as the company deliberately reduces supply of the Dunk and cuts back some Jordan retro releases to restore scarcity. Management expects China to worsen before it improves, with the reset continuing for multiple seasons, and its Pace restructuring program is expected to generate about $2.5 billion in savings, most of which are not expected until fiscal 2029 and 2030. Nike expects fiscal 2027 adjusted EPS of only $1.15 to $1.35, excluding about $0.15 of restructuring impact, and at 21.01x forward earnings investors are paying for a recovery that has yet to materialize, making November's Investor Day, where management will provide a five-year financial framework, the key test. Hedge fund sentiment weakened in the second quarter, with 56 hedge funds holding Nike, down from 71 in the first quarter, while the value of those positions rose slightly from $1.31 billion to $1.35 billion.

Nike launched Caitlin Clark's signature collection worldwide on October 1, the same day it reported quarterly earnings. The line includes the Caitlin 1 shoe, priced at $140 for adults with kids' versions at $105 to $115, plus an 18-piece apparel collection. On the earnings side, EPS came in at $0.48, above the $0.43 estimate, but revenue declined 4%, and for the full fiscal year Nike expects revenue to decline by a high single-digit percentage with adjusted EPS between $1.15 and $1.35. The stock trades at a forward P/E of about 21.0x, roughly 28% below its recent historical average of 32.97x, while EPS is forecast to drop 14.38% this fiscal year before recovering. Hedge fund ownership of Nike slipped from 71 funds at the end of Q1 2026 to 56 funds at the end of Q2 2026, and short interest remained high at 8.98% of float as of September 15, 2026.

Berenberg downgraded Nike to Sell from Hold and slashed its target price by 44% to $27.50, implying 19% further downside, with analyst Nick Anderson's team saying the market structure has "shifted irreversibly against Nike." The call follows fiscal first-quarter results in which lingering weakness in Jordan, sportswear, and China overshadowed double-digit gains in performance categories including golf, tennis, running, and basketball. Berenberg said Nike's plan to organize sportswear around smaller focus areas reads as an admission that the company has accepted a smaller place in sportswear. The analysts flagged inventory management as another challenge, estimating the clean-up will drag on past 2027, and said Nike's exclusion of any gross margin guidance for FY27 signals significant risk from inventory uncertainty. Berenberg does not expect benefits from the latest restructuring plan until FY29 and cut its revenue and EPS estimates for the next three years. Nike shares, down 47% year to date, were under pressure into Tuesday's open.

Zscaler shares gained 2.2% in premarket trading after the cybersecurity company reaffirmed its revenue and earnings guidance for fiscal 2027, maintaining its full-year revenue forecast of $3.91 billion to $3.94 billion and adjusted earnings per share guidance of $4.86 to $4.90. Nike shares fell more than 1% after Berenberg downgraded the sportswear maker to Sell from Hold and cut its price target to $27.50 from $49, arguing that the company has accepted a smaller place in sportswear. Constellation Energy stock climbed 3% after a major deal with Amazon, under which Amazon will purchase 690 megawatts of output from Constellation's Calvert Cliffs Clean Energy Center in Maryland under a 20-year contract supporting more than $3 billion in plant investment, and reports that Google is nearing a separate nuclear power supply agreement worth $1 billion or more. Vaxcyte stock fell 3.7% as investors weighed the dilutive implications of a $1 billion capital raise announced after Monday's close, consisting of $500 million in common stock and pre-funded warrants and $500 million in convertible senior notes due 2032. Freshworks stock climbed 3.9% after S&P Dow Jones Indices announced the company will be added to the S&P SmallCap 600 index effective before the market open on October 8, replacing BioLife Solutions.

Nike, Inc. reported first-quarter 2026 sales of US$11,213 million and net income of US$712 million, while guiding for a high-single-digit revenue decline in fiscal 2027. The softer quarterly results combined with the explicit outlook for lower future revenue have raised fresh questions about whether Nike's repositioning efforts can support earnings without further margin pressure. The company also declared a quarterly dividend of US$0.41 per share, payable October 1, 2026, a payout that is not well covered by free cash flow but that management chose to maintain as it balances shareholder returns against investment in product, marketing, and channel health. Nike's longer-term narrative projects US$48.5 billion in revenue and US$3.7 billion in earnings by 2029, requiring 1.5% yearly revenue growth and roughly a US$0.6 billion increase from US$3.1 billion in earnings today. Some of the most optimistic analysts had expected Nike's earnings to climb toward about US$5.7 billion with stronger margins, a view that contrasts sharply with the new revenue guidance.

US stock indices all closed higher, led by the Nasdaq, which finished at 27,190.86 points, up 319.27 points, or 1.19%. The Dow Jones closed at 51,176.96 points, up 250.40 points, or 0.49%, and the S&P 500 closed at 7,722.72 points, up 0.73%, after September nonfarm payrolls rose by only 29,000, below the expected 90,000, easing investor concerns that the Fed will accelerate rate hikes in the near term. NVDA rose 1.3% and TLSA surged 4.7%, helping drive the S&P 500 higher, but NKE fell 3.6% after weak revenue guidance from its China sales. Western Digital and Seagate Technology each dropped about 10% on concerns over competition in the hard disk drive business. In European markets, the STOXX Europe 600 closed at 626.65 points, down 8.24 points, or 1.30%, with major bank stocks heavily sold off after global bond yields surged amid market worries that interest rates will stay high longer than expected. The DAX closed at 24,939.35 points, down 259.84 points, or 1.03%, and the FTSE 100 fell 1.68% to a three-month low. In Asian markets this morning, the Nikkei 225 opened at 69,113.74 points, up 804.28 points, or 1.17%, while the Hang Seng remained slightly negative at 0.04%. The Shanghai Composite and KOSPI were closed for holidays. A stock to watch today is KAMART after its board approved a share buyback program of no more than 30 million shares, or no more than 2.34% of total issued shares, with buybacks to begin on October 6, 2026 and run through April 5, 2027.

Nike's dividend yield has climbed to 4.87%, roughly matching the 4.85% yield on the 2-year Treasury note, after a stock crash that has left the athletic-wear maker trading at record lows. The move follows Nike's earnings report late last week, in which CEO Elliott Hill suggested the weak sportswear market will continue in the medium term, forcing the company to discount slow-moving product, while full fiscal-year earnings guidance came in well below analyst estimates. Quarterly results showed Nike Brand sales fell 4%, online sales plunged 13%, Converse sales tanked 28% and China sales crashed 26%, and the company signaled a fresh round of major layoffs was coming. Nike stock is now down 47% year to date and 77% over the past five years. Jefferies analyst Randy Konik said that for investors willing to look beyond near-term volatility, Nike offers both income and recovery potential, while Stifel analyst Peter McGoldrick said he is not ready to call a bottom with shares trading at 28x P/E at the midpoint of FY27E guidance.

S&P Global Ratings has downgraded Nike Inc's credit rating to 'A' from 'A+', citing a prolonged turnaround across its key lifestyle segments and severe top-line deterioration in Greater China. The agency warned that the apparel giant faces negative cash flow generation over the next two to three years as restructuring costs and necessary reinvestments weigh on profitability. S&P expects Nike's consolidated revenue to contract by more than 7% in fiscal 2027 and weaken further in fiscal 2028, compounded by an incremental $1 billion in restructuring charges tied to an ongoing corporate overhaul. A steep downturn in Greater China remains a central driver, highlighted by a 26% top-line plunge in the first fiscal quarter, with the agency forecasting China revenue to fall approximately 30% for the full fiscal year, a dramatic retreat for a market that generated more than a fifth of total company sales at its peak. Nike maintains $11.4 billion in total liquidity, and S&P expects it to absorb a projected $1.2 billion annual cash burn after dividend outlays by suspending share buybacks, scaling back capital expenditures, and using cash reserves to satisfy upcoming debt maturities through early 2027, while the negative outlook flags the potential for further cuts over the next 12 to 24 months.

NIKE, Inc. is pursuing a newly announced Pace program expected to generate approximately $2.5 billion in cumulative savings through fiscal 2031, primarily by streamlining its organization, modernizing the supply chain, simplifying decision-making and improving productivity. The program is expected to incur about $1 billion in pre-tax charges, in addition to roughly $300 million of severance costs recorded in fiscal 2026. NIKE continues to prioritize growth-oriented investments rather than broadly cutting spending, with selling and administrative expenses declining 3% year over year in the first quarter of fiscal 2027 while demand-creation spending increased 5%. The company expects fiscal 2027 revenues to decline in high single digits as it makes deliberate portfolio adjustments across NIKE Sportswear, the Jordan Brand and Greater China, and reduces excess supply in key areas of the marketplace. Shares of NIKE have lost 21.6% in the past six months against the industry's decline of 16.9%, and the stock currently carries a Zacks Rank #5 (Strong Sell).

Nike shares fell 5.5% in the morning session after the athletic apparel brand reported a 4% sales decline and issued weaker-than-expected full-year profit guidance. The company guided fiscal 2027 revenues to decline by high single digits and estimated adjusted diluted earnings per share between $1.15 and $1.35, missing analyst expectations of $1.68 per share amid product challenges and an ailing China business. For calendar Q3 2026, which is fiscal Q1 2027, sales fell 4.3% year on year to $11.21 billion, short of revenue expectations, while GAAP profit of $0.48 per share came in 9.9% above analysts' consensus estimates and gross margin expanded 60 basis points to 42.8% on lower logistics costs. Chief Financial Officer Dave Denton warned on the call that China's revenue will worsen for the balance of the year as Nike cleans up promotional distribution, and Chief Executive Officer Elliott Hill said deliberately reducing Dunk production by nearly half created a roughly $200 million headwind in Sportswear. Denton also noted that the bulk of savings from the Pace operating model transformation, which targets approximately $2.5 billion in cumulative savings through fiscal 2031, will not ramp until fiscal 2029 and 2030.

Corporate upheaval and strategic announcements drove sharp moves in several stocks this week. MongoDB plunged 18.5% on Monday and is on course to end the week down around 14.7% after President and CEO Chirantan Desai resigned with immediate effect to lead a new AI initiative at Meta Platforms; former chief executive Dev Ittycheria returns as interim CEO, and the company reaffirmed its third-quarter and full-year guidance. Synopsys surged 12.8% on Thursday and has gained around 9.2% over the week after setting long-term targets at its 2026 Investor Day in New York, projecting fiscal 2027 revenue of $11.1 billion to $11.2 billion, roughly 15% growth at the midpoint, non-GAAP earnings of $19.04 to $19.12 per share, free cash flow of around $3.1 billion, and plans to repurchase approximately $1 billion of stock, alongside a partnership with OpenAI on GPT-Synopsys and a multi-year IP agreement with Amazon. Mattel jumped 18.8% on Thursday and is on course to close the week up 13.6% after The Wall Street Journal reported that Authentic Brands Group has approached the toy maker with an offer that could value it at more than $20 per share, or around $6 billion or more. Nike fell 5.3% over the week to its lowest level since 2013 after mixed fiscal first-quarter results, with adjusted earnings of 48 cents per share topping expectations of 44 cents but revenue of $11.21 billion missing estimates of $11.35 billion and falling 5% on a currency-neutral basis. Fair Isaac is down 22.7% for the week after Bloomberg reported that the Federal Housing Finance Agency plans to require lenders to use credit data from only two of the three major bureaus for mortgages sold to Fannie Mae and Freddie Mac.

Tesla shares rose 5% after the electric vehicle maker reported third-quarter deliveries of 486,532 vehicles, above the 461,100 units expected by analysts polled by FactSet. Broadcom rose more than 3% after Reuters reported it agreed to lend Anthropic up to $42 billion to finance infrastructure purchases, with investment banks seeking to raise $42 billion of Class A senior secured debt and $18 billion in Class B debt, according to Bloomberg. Nike fell almost 6% after its fiscal first-quarter revenue missed analyst expectations, with a 4% slide in sales tied to declines in China and plans to lay off staff in 2027. Synaptics surged 14% and ON Semiconductor rose more than 5% after ON Semi revised its buyout offer for Synaptics to $123 a share, or $5.7 billion. Seagate and Western Digital each tumbled 13% following a Nikkei report that Japan's Toshiba will double its hard disk drive production capacity for data centers and invest $380 million to expand facilities in the Philippines.

Nike Inc. is cutting jobs and embarking on a sweeping overhaul of the business as results deteriorate and test Wall Street's patience with Chief Executive Officer Elliott Hill. Sportswear, roughly 50% of Nike's business, is still down, Jordan is down, and China plunged 26% in the latest quarter, according to Bloomberg Intelligence senior US e-commerce and retail analyst Poonam Goyal. Goyal credited Hill with fixing North America and the performance business, which grew high single digits in the latest fiscal quarter, but said the turnaround will take more than 12 months and that investors will hear more at the analyst meeting in November. Nike already has a 2.5 billion dollar cost-savings plan in place that carries 1 billion dollars in restructuring costs, she said, adding that the remaining problem is product-led. Jordan, which Goyal said is 13% of Nike's sales and a 7 billion dollar business, suffered from flooding the marketplace with retro product, eroding the exclusivity, selection and scarcity that make the brand work.

Nike is cutting jobs and overhauling its business under a restructuring plan aimed at saving $2.5 billion over the next five years, and now expects a high-single-digit revenue decline this year, worse than the 2.4% drop analysts projected. Shares of Nike fell as much as 9.7% in New York on Friday. Broadcom's Wall Street syndicate has begun gathering $60 billion of fresh AI chip financing to benefit Anthropic and other companies. Fair Isaac Corp. shares rose after it launched the FICO Mortgage Direct License Program, with Bill Pulte signaling he was not purposefully targeting the company.

Robinhood has launched round-the-clock weekend trading in US equities, becoming the first brokerage to offer a 24/7 individual-stock product, while Disney is preparing a third round of layoffs in its television division. Robinhood CEO Vlad Tenev said the platform already offers continuous equity trading in about 2,000 US equities from Sunday 8 p.m. Eastern to Friday 8 p.m. Eastern, and that extending coverage through the weekend lets holders hedge when news breaks. The Walt Disney layoff plan, reported by The Wall Street Journal, drew no comment from the company, and Yahoo Finance's Brian Sozzi said cost-cutting under new CEO Josh D'Amaro makes further reductions likely as advertising pressure and high operating expenses squeeze the TV and sports businesses. The developments came as Nike posted a weak quarter, with brand sales down 4%, online sales down 13%, Converse sales down 28% and Greater China sales down 26%, and signaled more layoffs ahead. Nike guided to high-single-digit sales declines in fiscal 2027 and earnings of $1.15 to $1.35 a share against a Yahoo Finance estimate of $1.66. Sozzi also spoke with Dirty Jobs host Mike Rowe, who warned that a shortage of skilled trades workers will be the pinch point for a coming infrastructure buildout.

Nike's fiscal first quarter results disappointed, and CEO Elliott Hill's remarks on the earnings call left Yahoo Finance Executive Editor Brian Sozzi expecting the business to struggle for another two years. Sozzi called the situation one of the worst meltdowns he has seen in retail in some time, though he noted the company remains profitable and still has lots of sales. He outlined four areas Nike must focus on to follow through on its turnaround plan: sell Converse, stop selling sneakers everywhere to restore exclusivity, stop dragging its feet on cost cuts, and tell an AI story to an AI investing world. On cost cuts, Sozzi said Hill is likely to enact a large amount of layoffs soon, with a first wave possibly before year end, and pointed to the company's new CFO who cut a lot of costs at his prior company. He also noted Nike's online business was down 13%, saying AI is not helping the business at all.

The U.S. economy added only 29,000 non-farm payrolls in September, far below the 90,000 economists had expected, while the unemployment rate ticked up to 4.2% and average hourly earnings rose just 0.11%. Prior months were revised sharply lower, with July cut by 31,000 to minus 10,000 and August reduced by 29,000 to 133,000, a combined downward revision of almost 60,000 jobs. Allianz chief economic adviser Mohamed El-Erian said the report was weak across the board on labor demand, though he called a rise in the labor force participation rate to 61.8% encouraging on the supply side, and said the data will keep the Federal Reserve on hold in October. Within the report, goods-producing and private service-providing sectors showed strength, with construction adding 11,000 jobs and healthcare 17,000, while government shed 17,000 positions and manufacturing added 9,000, a slowdown from 15,000 the prior month. Separately, Nike posted a disappointing outlook for fiscal 2027, expecting a high single-digit revenue decline this year, worse than the 2.5% the Street expected, and said restructuring would save about $2.5 billion, while Tesla reported roughly 486,500 third-quarter deliveries, topping estimates of 463,000.

Nike shares fell more than 10% in premarket trading after the company missed revenue expectations against LSEG consensus for its fiscal first quarter, reporting sales down 4% on declines in its China business and announcing plans to lay off staff in 2027. Synaptics shares jumped over 14% and ON Semiconductor shares rose more than 7% following reports that ON Semiconductor will acquire Synaptics for $123 per share in cash, a transaction now valued at $5.7 billion, down from the prior agreement of $7 billion. Nexalin Technology shares dropped over 18% premarket after the medical device company announced a 10-year distribution and manufacturing deal with Inovanexa Medical Technologies on Thursday, clearing its Nexalin Sync neurostimulation device for distribution across seven South American countries. Vylor shares gained slightly after the seeds and genetics company was added to the S&P 500 on Thursday, following its spinoff from Corteva, which will move to the S&P MidCap 400. Seagate Technology and Western Digital shares fell over 11% and 8% respectively after a Nikkei report that Toshiba will double its production capacity for data-center hard disk drives and invest $380 million to expand facilities in the Philippines.

Nike tumbled 9.6% in premarket trading to $31.79 after the athletic footwear and apparel giant reported mixed fiscal first-quarter 2027 results and issued a weaker-than-expected full-year outlook. Nike reported adjusted earnings of 48 cents per share, topping the 44-cent consensus estimate, but revenue of $11.21 billion missed expectations of $11.35 billion and declined 5% on a currency-neutral basis from a year earlier. Synaptics surged 13.8% in premarket trading after onsemi and Synaptics amended their merger agreement, converting the transaction from an all-stock deal into an all-cash acquisition at $123 per share, valuing Synaptics at about $5.7 billion. The change followed an unsolicited, non-binding proposal from an unnamed strategic party received by Synaptics on Sept. 2, prompting the two companies to renegotiate the deal structure and consideration. Moderna rose 2.2% in premarket trading to $193.15 after Nasdaq confirmed the biotechnology company will be added to the Nasdaq-100 Index effective Oct. 9, replacing Warner Bros. Discovery, while Fair Isaac fell 6.9% after Bloomberg reported the Federal Housing Finance Agency plans to require lenders to use credit data from only two of the three major credit bureaus for mortgages sold to Fannie Mae and Freddie Mac.

Futures linked to Canada's main stock index edged higher on Friday as investors awaited key U.S. employment data and assessed ongoing volatility in the global bond market. By 06:09 ET, the S&P/TSX 60 index standard futures contract had risen by 5 points, or 0.2%, after the S&P/TSX composite index finished down 0.2% at 35,154.76 on Thursday, its lowest close since July 20. U.S. futures also rose, with Dow futures up 200 points, or 0.4%, S&P 500 futures up 32 points, or 0.4%, and Nasdaq 100 futures up 215 points, or 0.7%, while Brent crude fell 2.4% to $99.83 a barrel. September nonfarm payrolls are expected to show 89,000 jobs added versus 162,000 in August, with the unemployment rate seen at 4.1%, as Dallas Fed President Lorie Logan said rates will need to rise by at least 50 basis points to curb sticky inflation. Nike shares slumped more than 10% in premarket U.S. trading after the company outlined plans to cut more jobs and overhaul its global divisions, and said revenue is expected to drop in the high single digit in fiscal 2027 against analysts' projections for a decline of around 2%.

Broadcom is reportedly assembling a $60B debt package to fund AI infrastructure buildouts for companies like Anthropic, consisting of a $42B senior-secured tranche syndicated by banks and an $18B junior tranche led by Blackstone. Google has partnered with Planet Labs to successfully launch its Project Suncatcher prototype satellite into orbit aboard a SpaceX rocket, testing how well Google's Tensor Processing Units handle the extreme radiation and thermal conditions of space. Crude oil futures fell sharply following reports that the European Union and the International Energy Agency are discussing the release of 100M combined barrels of diesel and crude reserves to ease global supply shortages, a move urged by U.S. Treasury Secretary Scott Bessent. Nike's overall sales dropped 4% in its fiscal first quarter, dragged down by a 22% decline in Greater China and soft e-commerce, and its disappointing full-year revenue forecast sent shares tumbling around 10% in premarket trading while prompting acceleration of a new $2.5B cost-saving initiative called Pace. Eurozone annual inflation jumped to 3.8% in September, surpassing estimates of 3.6% and up from 3.2% the previous month, while core inflation rose slightly to 2.5% in line with expectations.

ON Semiconductor agreed to acquire Synaptics for $123 per share in cash, or approximately $5.7B, replacing the all-stock deal announced in June that was valued at about $7B. The revised transaction, which follows an unsolicited competing proposal, is expected to be immediately accretive to Onsemi's non-GAAP EPS and will be funded with cash on hand and committed debt financing from Morgan Stanley, with closing still expected by mid-2027; Synaptics' board unanimously approved the amended agreement. Synaptics shares rose 14% and Onsemi shares gained 6% on the news. ChronoScale Holdings climbed 6% after announcing an expansion with an existing AI infrastructure customer and a separate agreement with a new customer, bringing its contracted business to support a $1B annualized revenue run rate by Q3 2027, though the company cautioned the target depends on timely infrastructure deployment, power and equipment availability, and access to capital. Nike shares plunged 9% after reporting mixed FQ1 results, with revenue declining 4% Y/Y to $11B and a weaker-than-expected FY2027 outlook; Greater China sales plunged 22% Y/Y to $1.2B, Converse revenue fell 28%, Nike Direct declined 8%, and wholesale sales slipped 1%. Nike expects FY2027 revenue to decline by a high-single-digit percentage and adjusted EPS of $1.15-$1.35, excluding about $0.15 in restructuring costs, below the $1.67 consensus, with its PACE initiative targeting approximately $2.5B in savings through FY2031, including $1B in employee-related costs.

Zacks Investment Research added Johnson Outdoors, Clearfield and NIKE to its Zacks Rank #5 Strong Sell List for October 2nd. Johnson Outdoors, ticker JOUT, a global outdoor recreation company, saw its Zacks Consensus Estimate for current-year earnings revised 73.3% downward over the last 60 days. Clearfield, ticker CLFD, which designs and manufactures the FieldSmart fiber management platform, had its current-year earnings estimate cut almost 55.8% over the same period. NIKE, ticker NKE, the worldwide athletic footwear, apparel and equipment maker, saw its current-year earnings estimate revised almost 7.5% downward over the last 60 days.

Nike, the largest US sports equipment maker, is preparing a major business restructuring and further job cuts after the company forecast that revenue in fiscal 2027 will decline more than the market expects, amid continued sluggish sales in China. Nike expects the problems to persist for several more quarters, and first-quarter sales in China fell 26% on a constant-currency basis. Nike shares fell 8.5% in after-hours trading on Thursday, October 1. The company expects fiscal 2027 revenue to decline at a high single-digit rate, compared with analysts' average forecast of a roughly 2% drop for the full year. Nike announced a new operating model, reducing its global business regions from four to three: the Americas, Asia Pacific and China, and Europe, the Middle East and Africa, or EMEA, along with job cuts, and it plans to open a new campus in India. The company does not yet know how many positions will be eliminated and will begin notifying affected employees in 2027. The plan is expected to save about 2.5 billion dollars in costs by fiscal 2031, with most of the savings coming in fiscal 2029 and fiscal 2030. Elliott Hill, Nike's chief executive, said the company's sports goods business is not yet large enough to offset pressure from its sportswear business, the Jordan brand and the China market, adding that a recovery in the weaker parts of the business will take time and that Nike will reduce the number of retro Jordan product launches. Neil Saunders, managing director at GlobalData, said the restructuring plan is not problematic in itself but reflects that Nike's current business model may no longer suit the situation.

Nike shares fell about 3.5% after the sportswear giant reported a mixed fiscal first quarter in which an earnings beat failed to offset weaker-than-expected revenue. Adjusted earnings came in at 48 cents per share, topping Wall Street expectations of 44 cents, but revenue was $11.21 billion, below estimates of $11.35 billion and down 5% on a currency-neutral basis from a year earlier. The weakness was broad, with declines in Greater China and EMEA, while Nike Direct revenue fell 8%, and gross margin rose 60 basis points to 42.8% on lower warehousing and logistics costs. Nike also guided for fiscal 2027 revenue to decline by high-single digits, with adjusted EPS of $1.15 to $1.35 excluding about $0.15 of restructuring expenses, and said its new Pace operating model is expected to generate approximately $2.5 billion in cumulative savings through fiscal 2031 while incurring approximately $1 billion in pretax charges over the same period, including about $300 million in fiscal 2027. CEO Elliott Hill said the company's Sport Offense strategy is producing measurable progress in its performance business, while acknowledging more work remains in Sportswear, Jordan Brand and Greater China.

Nike reported fiscal third-quarter revenue of $11.21 billion, down 4.3% year on year and below analyst estimates of $11.33 billion, a 1% miss. GAAP earnings per share came in at $0.48, beating the consensus estimate of $0.44 by 9.9%, though down from $0.49 a year earlier. Operating margin was 8.1%, in line with the same quarter last year, while constant currency revenue fell 5% year on year. The company guided for revenues to decline high-single digits in fiscal 2027, with non-GAAP diluted earnings per share expected between $1.15 and $1.35, excluding $0.15 of restructuring expenses. Shares fell 6.3% to $33.00 immediately after the report.

Nike investors are hoping for a reset when the sportswear giant reports earnings. Shares are trading near their lowest level since 2014, while Wall Street analysts continue to cut estimates and price targets. Yahoo Finance Senior Business Reporter joined Market Domination Overtime to break down what investors should watch when Nike reports its fiscal first-quarter results on Thursday, October 1.

Nike could be headed for another "reset moment" when it reports earnings later this week, with Evercore ISI analyst Michael Binetti warning that the sportswear giant may need to signal lower second-half fiscal 2027 revenue. Binetti said Nike has likely seen cancellations or negative order revisions from retailers for Spring 2027 since its last earnings call, which he expects to translate into further negativity in the company's fiscal second-half 2027 revenue outlook, and he argued that with a new CFO joining, it might make sense to lower that outlook on this call. The report lands against a rough backdrop: Nike stock is down about 25% since its last earnings report on May 28, trades near a 52-week low, is off 53% from its year-ago peak, and has seen its market cap roughly cut in half since 2021 highs. Nike projected fiscal first-quarter revenues down by low-to-mid-single-digit percentages and reiterated flat earnings per share growth over the next three quarters, excluding benefits from tariff recovery proceeds, after reporting fiscal fourth-quarter revenue of $11 billion, a 1% reported decline and a 4% currency-neutral drop, with diluted earnings per share of $0.72 inflated by a $0.52 per share one-time tariff recovery benefit. Stifel analyst Peter McGoldrick said in his own preview that risk-reward remains hung up on insufficient consumer demand for new products while Hoops Classics, 18% of revenue, continues to shrink, and that at 17x 2027 calendar year price-to-earnings estimates versus a footwear median of 11x, he sees risk to the multiple if the turnaround timeline slips again. The company also faces the loss of soccer icon Kylian Mbappé, who ended his long-term Nike tie-up this month to join Swiss sports giant On, and a brutal late-August warning from Dick's Sporting Goods tied in part to Nike heavily discounting slow-moving product, while CEO Elliott Hill continues to battle execution issues, changing sneaker preferences, cautious consumers, and hungry competitors like On.

Investors turn this week to a heavy earnings and economic calendar headlined by Micron's fiscal fourth quarter report on Wednesday and Friday's September jobs report. Micron's results will be scrutinized for signs of continued demand in the memory trade, which has emerged as one of the most significant bottlenecks for the AI build-out, while Nike reports Thursday as CEO Elliott Hill faces investor concerns and the loss of French soccer star Kylian Mbappé to On. On the data front, economists expect 100,000 jobs added in Friday's September report after August's 162,000 far exceeded the 53,000 estimate, with BNP Paribas forecasting 90,000 and Bank of America forecasting 60,000; Wednesday also brings PCE inflation data, the Fed's preferred metric, watched for whether the FOMC will hike rates again in 2026. Meta's week was dominated by Muse, its new AI agent that Zuckerberg said has millions of users and has topped Apple's App Store and Google's Play Store, with the company planning to take a small cut on transactions made through the agent and extending it to next-generation Meta VR Glasses and the handheld Muse Charm. The extension of the US-China trade truce by two months, to Jan. 10, 2027, was the biggest news from Xi Jinping's first state visit since November 2023, though Trump's team is considering new 7.5% tariffs on China over overcapacity and has delayed action until after this week's meeting. Consumer sentiment fell to 48.1 in September from 51.7 in August, slightly above the Street's 47.5 expectation, as consumers' expectations for their personal finances weakened by about 10%.

Bank of America downgraded Nike to Underperform from Neutral, with analyst Lorraine Hutchinson cutting her price target to $30 from $47 and lowering fiscal 2027 and 2028 EPS estimates by 11% and 12% to $1.43 and $1.87, saying the turnaround is taking longer to materialize. Stifel upgraded Microsoft to Buy from Hold, with analyst Brad Reback raising his price target to $575 from $530 and citing confidence in sustaining mid-to-upper-teens revenue growth. J.P. Morgan upgraded CoreWeave to Overweight from Neutral and lifted its price target to $125 from $120, pointing to favorable compute pricing and a greater willingness to lean into short-term contracts at premium pricing. UBS downgraded PG&E to Neutral from Buy and cut its price target to $14 from $19, lowering its long-term EPS growth forecast to 8.5% from 9% as the wildfire liability reform catalyst fades. KeyBanc downgraded Comcast to Underweight with an $18 price target, expecting domestic broadband net losses to widen to 665,000 in 2027, while HSBC downgraded Twilio to Reduce from Hold and Rosenblatt initiated SanDisk at Buy with a $2,400 price target.

French soccer star Kylian Mbappe has ended a two-decade partnership with NIKE, Inc. to sign with Swiss sportswear brand On, according to a Reuters report dated September 18, 2026, in a deal that includes both cash and equity and gives On Holding AG its first major star as it pushes into soccer for the first time. A source told CNBC that Nike chose not to renew Mbappe's contract as it expired in July 2026, deciding to direct its endorsement spending elsewhere. The signing gives On immediate global credibility ahead of its first soccer boots in 2027, with Thierry Henry serving as director of football and Roger Federer backing the brand, while the equity component aligns Mbappe with On's long-term success. Nike retains a powerful soccer platform despite the loss, still supplying France's national teams through the 2033-34 season and becoming the German national teams' official supplier in 2027, and shares of both companies barely moved after the announcement. On still faces pressure in the Americas, which contribute more than half of its revenue, after missing second-quarter sales estimates and with its shares down approximately 40% in 2026, while Nike has also lost Lamine Yamal to Adidas and the Premier League match-ball contract to Puma.

Bank of America downgraded Nike to Underperform from Neutral and slashed its price target to $30 from $47, implying roughly 17% downside from Nike's latest close. Analyst Lorraine Hutchinson said Nike's turnaround is taking longer to materialize as weakness in its larger lifestyle categories outweighs progress from newer product launches. BofA also cut its fiscal 2027 and 2028 earnings-per-share estimates by 11% and 12%, respectively, to $1.43 and $1.87, and now expects negative sales growth through fiscal 2027, effectively pushing a meaningful top-line recovery into fiscal 2028. The bank flagged North American wholesale as a major concern, saying recent wholesale growth has not been matched by strong sell-through at retail, while Greater China sales fell 17% in the latest quarter and a planned reduction in distribution through e-commerce partners could create additional near-term weakness. BofA also noted that its fiscal 2027 estimates imply a payout ratio of roughly 107%, meaning projected earnings would not fully cover the dividend.

Akamai Technologies surged more than 21% in premarket trading after announcing a seven-year power contract and an $11.6 billion deal with Anthropic, alongside a warrant letting Anthropic buy up to roughly 5% of Akamai's shares at $111.33 each. Scholastic fell over 10% after posting an adjusted fiscal first-quarter loss of $3.63 per share, wider than the $2.52 per share loss a year earlier, on revenue of $216.8 million, down 4%. Synopsys gained over 3% after HSBC upgraded the stock to buy from hold, with analyst Frank Lee calling the company a high-growth AI beneficiary under its new business model. Nike slid nearly 2% after Bank of America downgraded it to underperform from neutral, expecting sales declines from the second quarter through the rest of fiscal 2027. Costco Wholesale edged lower even after reporting better-than-expected fiscal fourth-quarter results, with adjusted earnings of $6.60 per share on revenue of $95.72 billion, topping LSEG consensus estimates of $6.53 per share and $94.86 billion.