> ## Content Index > Fetch the complete content index at: https://brief.sharpertrades.com/llms.txt > Use this file to discover other available public pages before exploring further. # Nike Earnings Loom as Analysts Warn Turnaround May Need Another Reset - URL: https://brief.sharpertrades.com/nike-earnings-loom-as-analysts-warn-turnaround-may-need-another-reset/ - Published: 2026-09-28T14:21:00.000Z - Updated: 2026-09-28T15:32:30.000Z - Description: Nike reports fiscal first-quarter 2027 results on Oct. 1 after the close, with analysts watching weak demand, promotions, China and wholesale trends for signs that its turnaround is stabilizing—or slipping further behind. - Author: Luca Moschini - Tags: Earnings, Business Trends, Price Action ### Nike Earnings Put Turnaround Progress Under the Microscope Nike (NKE) is preparing to report fiscal first-quarter 2027 results on Oct. 1 after the close of regular trading, following a difficult stretch for both its business and stock. Analysts expect approximately $11.3 billion in revenue and $0.44 in adjusted earnings per share, while the company previously projected fiscal Q1 revenue to decline by a low- to mid-single-digit percentage. The report comes as analysts debate whether Nike's recovery is beginning to stabilize or will require another reset. The stock has fallen about 44% in 2026, while concerns remain around promotions, China, product demand and the pace at which the company can rebuild growth. --- ### Key Points - Nike is expected to report roughly $11.3 billion in fiscal Q1 revenue and $0.44 in adjusted EPS, with management previously forecasting a low- to mid-single-digit revenue decline. - Analysts remain concerned about promotions, China, product demand and the pace of the turnaround, with Piper Sandler and Bank of America cutting earnings expectations. - Other analysts see signs of stabilization in North America and wholesale. Thursday's earnings provide the immediate test, while Nike's mid-November Investor Day could provide a clearer view of its fiscal 2027 and 2028 direction. --- ## Why Is Nike's Turnaround Taking Longer? Nike's latest results established a difficult starting point for fiscal 2027\. Fiscal fourth-quarter revenue was $11.0 billion, down 1% year over year on a reported basis and 4% on a currency-neutral basis. Greater China revenue fell 17% on a currency-neutral basis, while North America revenue increased 3% on a reported basis. For fiscal 2026, revenue was essentially flat at $46.4 billion compared with $46.3 billion the previous year, while net income declined 3% to $3.11 billion. Management has been working on inventory optimization, distribution efficiencies and its product portfolio. Nike ended fiscal 2026 with $7.6 billion in cash and equivalents after generating $2.9 billion in operating cash flow. The company has also been reducing excess inventory and rebuilding wholesale relationships. Still, analysts have highlighted continued weakness across international markets, sportswear products and direct-to-consumer channels. China remains one of the central challenges. Nike has reduced inventory and supply in the region as weaker consumer spending and competition weigh on demand. Management has already lowered its assumptions for China, while analysts continue to question how quickly the market can stabilize. ## Promotions and Product Demand Pressure the Earnings Outlook The immediate earnings debate is increasingly centered on margins and product demand rather than simply whether Nike can meet quarterly revenue expectations. Piper Sandler raised its fiscal first-quarter sales estimate to align with Wall Street expectations for North America Wholesale but lowered its gross-margin and EPS estimates because of a more promotional environment during the quarter. Its fiscal second-quarter and full-year 2027 estimates are now 12% below Wall Street expectations. Bank of America also reduced its expectations, lowering its fiscal 2027 and 2028 EPS estimates by 11% and 12%, respectively. Its fiscal 2027 EPS forecast was 14% below Visible Alpha consensus. The firm cited weakness in Nike's classic footwear business and said innovation has not yet offset those declines. It also expects North America wholesale sales to decline from the second quarter through the remainder of fiscal 2027 after that channel grew 14% in fiscal 2026. Evercore ISI analyst Michael Binetti raised another concern: retailer cancellations or negative order revisions for spring 2027 could translate into additional pressure on Nike's second-half fiscal 2027 revenue outlook. That possibility matters because current consensus expectations assume revenue bottoms during the first half of fiscal 2027 at approximately a 4% year-over-year decline before improving to roughly flat growth during the second half. ## What Could Signal Progress in Nike's Recovery? Not every analyst expects the upcoming report to deliver another deterioration. Jefferies analyst Randal J. Konik expects Nike's fiscal first-quarter results to show continued progress, including stabilization in North America and wholesale. He forecasts earnings of $0.48 per share and revenue of $11.5 billion, both slightly above Wall Street expectations. Management has also indicated that gross margin should begin expanding starting in the second quarter of fiscal 2027\. During the final quarter of fiscal 2026, lower cancellations and reduced customer discounts helped gross margin, excluding a tariff-recovery benefit, perform better than management had previously guided. The upcoming quarter, however, may not provide the complete picture of Nike's turnaround. Analysts have highlighted the company's mid-November Investor Day as another important event, particularly following the arrival of new CFO David Denton. Evercore ISI noted that Nike had previously indicated it might wait until the November event before providing a full fiscal 2027 outlook. Jefferies similarly views the Investor Day as an opportunity for management to establish fiscal 2027 and 2028 expectations. That puts the events in sequence. Nike's Oct. 1 earnings report is the immediate test of whether stabilization is beginning to appear in the business, while the subsequent Investor Day could provide a broader view of fiscal 2027 and 2028 and the longer-term turnaround. --- ## What It Means for Investors Nike's upcoming earnings report arrives with expectations already reflecting substantial business pressure. The stock has fallen about 44% in 2026 and was trading near a 52-week low ahead of the report. The decline has accompanied weak demand in China, elevated promotional activity, increased competition and questions about whether newer products can compensate for declining classic footwear franchises. At the same time, Nike continues to generate operating cash flow and is working to improve inventory, distribution and product positioning. Management expects gross-margin improvement beginning in fiscal Q2, while some analysts see stabilization developing in North America and wholesale. The key issue is therefore not simply the first-quarter headline numbers. Revenue trends, gross margins, promotional activity, China, wholesale demand and management's expectations for the second half of fiscal 2027 can provide additional evidence about the pace of the turnaround when Nike reports Oct. 1. ## Conclusion Nike enters its fiscal first-quarter report on Oct. 1 with its turnaround still facing significant tests. Analysts expect approximately $11.3 billion in revenue and $0.44 in adjusted EPS, but several firms have lowered longer-term earnings expectations as promotions, international weakness and product-demand concerns persist. There are also signs worth monitoring for stabilization. North America and wholesale could show progress, while management expects margins to begin improving during fiscal Q2. For now, the immediate focus is Thursday's earnings report and whether it supports the current recovery timeline or forces expectations lower again. Nike's mid-November Investor Day comes afterward and could provide a more complete framework for fiscal 2027 and 2028. --- ## FAQs ### When does Nike report fiscal Q1 2027 earnings? Nike is scheduled to report its fiscal first-quarter 2027 results on Oct. 1 after the close of regular trading. ### What are analysts expecting from Nike's upcoming earnings? Analysts expect approximately $11.3 billion in revenue and $0.44 in adjusted earnings per share for fiscal Q1 2027. ### Why has Nike's turnaround been difficult? Nike continues to face weak demand in China, promotional pressure, competition, weakness in some classic footwear products and uneven trends across international and direct-to-consumer markets. ### What has Nike said about fiscal Q1 revenue? Nike projected fiscal first-quarter revenue to decline by a low- to mid-single-digit percentage. ### What should investors watch after Nike's earnings? Nike's mid-November Investor Day will be another important event as analysts look for greater clarity on the company's fiscal 2027 and 2028 outlook and the longer-term turnaround. *This article was created with AI assistance and reviewed by an editor. 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