Nike is signaling that its turnaround will take longer, with weaker demand and persistent problems in China forcing the sportswear giant to lower expectations for fiscal 2027. The latest results highlight the difficulty of restoring growth while the company restructures its operations, manages its product portfolio and responds to changing consumer demand across major global markets.

First-Quarter Revenue Misses as China Remains a Major Weakness

Nike reported first-quarter fiscal 2027 revenue of $11.21 billion, down 4% from a year earlier and below analyst expectations. Earnings per share reached $0.48, while gross margin was 42.8%. The most significant regional weakness remained Greater China, where sales fell 26%, marking the ninth consecutive quarter of decline. North America provided some offset through growth, but weaker performance in China and continued pressure across parts of the product portfolio remain major obstacles to a broader recovery.

Nike Lowers Expectations for Fiscal 2027

The company now expects fiscal 2027 revenue to decline by a high-single-digit percentage, a considerably weaker outlook than the low-single-digit decline previously anticipated by analysts. The revised forecast indicates that Nike expects the current challenges to persist beyond the immediate quarter rather than being resolved through short-term changes in inventory or distribution. Weakness in Sportswear and the Jordan Brand is also keeping pressure on the company as it works to rebuild product momentum.

Restructuring Becomes Central to the Turnaround Strategy

Nike is responding with a broader operating transformation that includes consolidating its global structure from four regions to three, streamlining the organization and continuing to adjust its supply chain. The company expects the restructuring program to generate $2.5 billion in savings by fiscal 2031, although implementation will involve additional costs and job reductions. Nike also plans to establish a new campus in India, while employees affected by further cuts are expected to be notified beginning in 2027.

The next phase of Nike’s turnaround will depend on whether cost reductions can improve profitability without weakening investment in product innovation and brand development. Investors will be watching Greater China for signs of stabilization, while also tracking North American demand, the performance of Sportswear and Jordan, gross margins and the pace at which restructuring savings are realized. The balance between near-term financial pressure and longer-term brand recovery is likely to remain central to Nike’s market outlook.