$NKE · NIKE, Inc.

Nike filed its 10-Q for Q1 FY2027 (ended August 31, 2026), reporting revenue of $11.213B, down 4.3% YoY. Net income was $712M ($0.48 diluted EPS) versus $727M ($0.49) a year ago. Gross margin expanded 60 bps to 42.8%, but SG&A deleveraged by the same amount to 34.9% of revenue. The quarter was marked by sharp regional divergence: North America revenue grew 2% while Greater China EBIT fell 34% and Converse revenue plunged 28%.

Extended-hours trading shows NKE at $33.83, down 0.12% from the regular close of $33.87. The modest after-hours drift suggests the revenue miss and China weakness were largely priced in during the regular session's 3.64% decline.

Nike's core North America business grew just 2% while China and Converse posted steep double-digit declines — the turnaround under new leadership shows no traction yet.

Nike's 8% NIKE Direct decline contrasts with the broader athletic retail trend of DTC growth, suggesting brand-specific demand weakness rather than sector headwinds. The 28% Converse collapse signals the retro/classics sub-segment may be cooling faster than premium performance.

Greater China EBIT fell 34% with no sign of stabilization — a critical region where geopolitical and consumer sentiment risks remain acute. Inventories rose to $7.85B from $7.50B at year-end, raising risk of margin-eroding discounting if demand doesn't recover.