# Nike Faces Revenue Decline as Analysts Weigh Turnaround Timeline

- URL: https://stocks.freetheai.org/news/nike-faces-revenue-decline-as-analysts-weigh-turnaround-timeline-d66011
- Published: 2026-10-12T12:33:03Z
- Category: company_news; sentiment: bearish; impact: high
- Symbols: [NYSE:NKE](https://stocks.freetheai.org/symbols/NYSE-NKE)
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Nike, Inc. (NYSE:NKE) reported a 4% drop in first-quarter fiscal 2027 revenue to $11.2 billion, alongside projections for sales to decrease at a high-single-digit percentage rate across the full fiscal year. Operating profits are expected to decrease even faster. Strategic turnaround measures, including efforts to rebuild wholesale distribution and focus on core athletic categories, have been partially offset by a 28% drop in Greater China revenue amid competition from domestic brands.

The ongoing revenue slowdown matters to investors as Nike navigates structural pressures across its Sportswear and Jordan lines. Shares have fallen more than 76% over five years, pushing the dividend yield to 4.8%. Cash flow sustainability has come into focus after recent quarters recorded negative free cash flow, pushing the payout ratio above 100% of forward earnings expectations. In addition, wall street analysts remain divided on whether current stock valuation multiples accurately reflect near-term earnings risk.

Looking ahead, investors will be monitoring Nike's supply chain updates as the business considers shifting production closer to North American and European, Middle Eastern, and African markets. Analysts from Berenberg downgraded the stock to Sell with a $27.50 target price, estimating that restructuring benefits may not fully take effect until fiscal 2029 and that inventory clearing in Asia could persist beyond 2027.

## Key points

- Nike, Inc. (NYSE:NKE) reported a 4% decline in Q1 FY27 revenue to $11.2 billion and projected high-single-digit sales drops for the full year.
- Greater China sales fell 28% during the quarter amid weak consumer spending and rising competition from domestic footwear brands.
- Nike is evaluating supply chain changes, including shifting sourcing closer to key markets in North America and EMEA.
- Berenberg downgraded the stock to Sell with a $27.50 price target, warning that restructuring benefits may not materialize until FY29.

## Questions and answers

### Why is Nike stock declining?

Nike stock is falling due to multi-year revenue declines, a 28% drop in Greater China sales, lower full-year financial guidance, and concerns over dividend sustainability.

### What is Nike doing to turn around its business?

Nike is rebuilding wholesale partnerships, focusing on core sports categories, and considering supply chain shifts closer to its North American and EMEA markets.

### What are analysts forecasting for Nike fiscal 2027?

Management expects full-year fiscal 2027 revenue to drop at a high-single-digit rate, with earnings per share projected between $1.15 and $1.35.