Nike is facing fresh pressure after disappointing quarterly results raised new questions about the speed of its turnaround.
The company reported $11.2 billion in fiscal first quarter 2027 revenue, missing Wall Street expectations. Nike also warned that revenue is now expected to decline by a high single digit percentage for the full fiscal year, according to Reuters.
China becomes Nike’s biggest problem
The most concerning numbers came from Greater China.
Nike's revenue in the region dropped 26 percent, marking the ninth consecutive quarter of declining China sales.
The company faces stronger local competition, changing consumer preferences and challenges with its product strategy.
China was once one of Nike's major growth engines, making the continued decline particularly important for investors.
Nike plans more job cuts
CEO Elliott Hill is accelerating efforts to restructure the company.
Nike plans additional job reductions, although the exact number of affected employees has not been announced.
The company is also reorganizing its geographic operations and targeting approximately $2.5 billion in savings by fiscal 2031.
Nike hopes the changes will reduce costs while allowing it to respond more quickly to consumers.
Competition is getting tougher
Nike is also facing stronger competition across the global sportswear market.
Brands including On, Hoka and New Balance have gained attention in performance running, while Adidas remains one of Nike's biggest global rivals.
Hill's turnaround strategy is focused on product innovation, sport and rebuilding relationships with retailers.
The challenge is turning those changes into stronger sales.
Nike stock remains under pressure
Nike shares have fallen dramatically from their highs.
Company investor data showed Nike stock around $35.40, compared with a 52 week high of $76.97.
The latest earnings report adds another concern for investors already waiting for signs that Nike's business has stabilized.
Improved gross margins provided one positive signal, but weaker revenue, falling China sales and a reduced annual outlook dominated the results.
Can Nike turn things around?
Nike remains one of the world's most recognizable sports brands, but its latest quarter shows how difficult its recovery has become.
The company is cutting costs, restructuring operations and trying to produce more compelling products.
For investors, the key question is now simple: when will those changes start producing sustainable sales growth?
The next several quarters could provide the answer.
