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Nike Shares Plunge 8.5% on Weak Outlook, Job Cuts; Turnaround Hits Roadblock
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Storyboard•02-10-2026, 14:26
Nike Shares Plunge 8.5% on Weak Outlook, Job Cuts; Turnaround Hits Roadblock
- •Nike's shares plummeted 8.5% after forecasting a sharper-than-expected revenue decline for fiscal 2027 and announcing a new restructuring plan.
- •The company expects revenue to decline by a high-single-digit percentage in fiscal 2027, significantly worse than analysts' projections, potentially leading to the lowest annual sales since fiscal 2020.
- •Nike's restructuring includes job cuts and a global business reorganization, aiming for $2.5 billion in savings over five years, with decisions on affected positions starting in 2027.
- •Challenges persist across key businesses, including Greater China, Sportswear, and Jordan, while Converse has seen 14 consecutive quarters of declining revenue.
- •CEO Elliott Hill faces renewed pressure as the latest forecast suggests Nike's recovery is taking longer than anticipated, despite efforts to refocus on performance footwear and rebuild wholesale.
Key Questions Answered
Nike shares dropped after the company forecast a sharper-than-expected revenue decline for fiscal 2027 and announced another round of restructuring to save costs.
Nike is targeting $2.5 billion in savings over five years through a broader restructuring of its global operations, which is expected to incur about $1 billion in pretax charges.
Greater China has seen sales decline for nine consecutive quarters due to local competition and shifting consumer preferences. Additionally, the Sportswear and Jordan businesses have struggled, and Converse has posted its 14th straight quarter of falling revenue.
