Observed Signal · Oct 2, 2026 · Earnings Report · Source: CNBC Investing · Impact: 2/5 · Sentiment: Negative
Nike stock hits 13-year low, analysts see more downside
Nike's shares are set to open at their lowest since 2013 following a disappointing fiscal Q1 2027 report. Despite beating earnings expectations, revenue slightly missed and the company guided for high single-digit revenue declines in fiscal 2027. A $2.5 billion cost savings plan was announced, along with further layoffs. Shares fell 9% premarket and are down ~45% year-to-date. Analysts remain cautious, citing challenges in sportswear, Jordan, and China, and see limited visibility for a turnaround. Several firms lowered price targets, with Wells Fargo noting a ~25% cut to Street EPS estimates. The November investor day is seen as a key catalyst for any potential recovery.
Nike is a major advertiser but this stock decline is about financial performance and not directly related to advertising technology or marketing.
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Key Takeaways & Evidence Grounding
- Nike reports fiscal Q1 2027 EPS of $0.48 vs $0.43 expected.
- Revenue came in at $11.21 billion, slightly below the consensus of $11.32 billion.
- Company guides for high single-digit revenue decline in fiscal 2027.
- Nike announces $2.5 billion cost savings program and additional layoffs.
- Shares are down about 45% year-to-date in 2026.
Connected Companies & Entities
6 Entities mapped“Nike's shares are primed to open at their lowest price since 2013......”
“"It's simply hard to find good news here," Wells Fargo analyst Ike Boruchow said......”
“Goldman Sachs: neutral, $30......”
“Morgan Stanley: underweight, $27......”
“Bank of America: underperform, $24......”
“Bernstein: outperform, $45......”
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Evercore Downgrades Nike, Sees Limited Stock Upside
Evercore ISI downgraded Nike to in-line from outperform and cut its price target to $46 from $57, citing limited upside for the athletic brand. Analyst Michael Binetti said Nike’s large-scale turnaround is taking time, with checks showing renewed resets in the wholesale channel, weak near-term execution and little product innovation expected into calendar 2027. Nike has seen its shares fall about 32% year-to-date amid a profit-margin squeeze tied to U.S. tariffs and slowing sales in China. Evercore warned Nike may need to lower consensus estimates to avoid a worse outcome when it reports fiscal guidance.
Nike Q4: Margin Gains but Revenues Slip
Nike reported that it expects approximately $986 million in tariff refunds tied to the International Emergency Economic Powers Act (IEEPA) as part of its fiscal 2026 fourth-quarter disclosure, boosting gross margin by 890 basis points to 49.2%. The company said its North America business expects $965 million and its Converse business $21 million; Nike already received about $300 million in IEEPA-related cash during the fiscal year. The refunds follow a U.S. Supreme Court ruling that found the prior administration’s IEEPA tariffs were illegally collected; experts warn the refund process could take weeks or months and that the federal tally could reach as much as $175 billion including interest. Executives flagged ongoing macro volatility and noted a planned CFO transition to David Denton in August.
Nike Plans More Layoffs, Shares Fall
Nike CEO Elliott Hill announced a new cost-cutting program called 'Pace' aiming to save $2.5 billion by mid-2031. The plan includes further layoffs, supply chain modernization, a new campus in India, and organizational streamlining. Nike reported a 4% revenue decline to $11.2 billion in Q1, with a 26% drop in China. The company expects a high single-digit revenue decline for fiscal 2026/27, worse than expected. Shares fell 8.5% in after-hours trading. The announcement also negatively impacted competitors Adidas and Puma.
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