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 IncNIKE's Pace program carries ~$1B pre-tax charges and ~$300M severance, with fiscal 2027 revenue expected to decline high single digits amid portfolio adjustments.
Lululemon Athletica Inc.
