Nike Guides 2027 Revenue Lower

Nike is pulling back on supply and simplifying its operations to regain control over pricing, but that strategy is squeezing revenue just as its crucial China market stumbles and investors are losing patience. Revenue for the recent quarter slid 4% to $11.2 billion, with net income down as well. Even as performance categories like running gear are growing, it’s not enough to offset sharp drops in iconic lifestyle lines like Sportswear and Jordan, or a stunning 26% plunge in China. The core issue: Nike’s main engines aren’t firing, and without new hit products, margin gains from cleaner inventory may be short-lived.

But here’s the catch: Nike is betting big on a multi-year overhaul called “Pace” that reorganizes global regions and launches a new hub in Bengaluru, India, promising $2.5 billion in savings. In theory, this should speed up decision-making and tailor products to local tastes, especially in Asia, but it also risks diluting focus just when China needs a turnaround the most. Meanwhile, Nike’s plan to pull back online rights from third-party sellers in China is a high-stakes move to regain pricing control—if it sparks a recovery by 2027, it’s a win. If not, deeper cuts could be coming.

Based on reporting and management commentary from the latest Nike earnings call, with insights from CEO Elliott Hill and analysis by BNP Paribas.

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