Nike 8-K
RestructuringNew guidanceEarnings
Pace launches to cut costs and improve productivity as NIKE works to strengthen NIKE Sportswear, Jordan Brand and Greater China.
Filed 2026-10-01 16:15 ET
Alerts
Filing event
Restructuring
This filing includes Item 2.05. Exit or disposal costs are often part of a planned cost reduction; see the filing for the scope and costs.
An alert from the filing's SEC item codes, not from reading its text. Filing on SEC.gov
- 2.02 Results of Operations
- 2.05 Costs of Exit or Disposal Activities
- 9.01 Financial Statements and Exhibits
Summary
Q1 FY2027 results, FY2027 outlook and a multi-year cost program. Revenue fell 4% Y/Y and net income fell 2%, while gross margin expanded 60 bp. NIKE launched Pace to improve productivity and reduce costs as it works to strengthen NIKE Sportswear, Jordan Brand and Greater China.
Key Figures
| Metric | Q1 FY2027 | Q1 FY2026 | Y/Y |
|---|---|---|---|
| Revenue | $11.2B | $11.7B | -4% |
| Gross margin | 42.8% | 42.2% | +60 bp |
| Net income | $712M | $727M | -2% |
| Diluted EPS | $0.48 | $0.49 | -2% |
- Revenue declines included Greater China (-22%) and Europe, Middle East & Africa (-5%); North America grew 2%. NIKE Direct revenue fell 8%, while wholesale revenue was down 1%.
- Pace is expected to deliver ≈$2.5B in cumulative savings through FY2031, before expected charges and any future reinvestment. Estimated pre-tax charges are ≈$1.0B, in addition to ≈$0.3B of severance recognized in FY2026; ≈$0.3B is expected in FY2027, with the remainder through FY2031. Most charges are expected to result in future cash expenditures, and all are expected to be substantially incurred by the end of FY2031.
- Inventories were $7.85B, down 3%. Cash and short-term investments were $8.4B, down ≈$0.2B; shareholder returns were ≈$610M in dividends, up 3%.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | FY2027 | Decline high-single digits | — | — |
| Effective tax rate | FY2027 | Mid-20% range | — | — |
| Adjusted diluted EPS (non-GAAP) | FY2027 | $1.15-$1.35; excludes ≈$0.15 of Pace restructuring expenses | — | — |
Investor Takeaways
- Track FY2027 revenue and adjusted diluted EPS against the company’s outlook.
- Pace execution through FY2031 will determine whether savings approach the stated estimate and charges remain within the expected amount and timing.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3