Nike Warns of Weak Demand, Sees Revenue Decline
Nike reported weaker store traffic and softening discretionary spending, forecasting fiscal 2027 revenue to decline low-to-mid single digits, below expectations.
Nike management issued a cautious outlook, citing weaker demand across global markets. CEO noted reduced store traffic and softer discretionary spending, with operating conditions worsening through Q4.
The company is right-sizing its distribution network to match demand and cut supply chain costs. Tariffs remain a headwind, with no expected improvement in the operating environment over the next six months.
Nike forecasts fiscal 2027 revenue to decline low-to-mid single digits, well below the 0.4% growth expected by analysts. Q1 revenue is also expected to fall low-to-mid single digits, while Q1 gross margin is seen as slightly positive.
Source: First Squawk