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Nike’s recovery remains uneven: in fiscal Q1 2027, revenue fell 4% to $11.2 billion, NIKE Direct fell 8%, and Converse fell 28%. The company also forecast a high-single-digit revenue decline for FY2027. There are signs of progress in running, but Nike’s latest results do not show a broad turnaround yet.
What Nike’s latest results say about its recovery
Nike reported fiscal Q1 2027 results on October 1, 2026, for the quarter ended August 31. Revenue was $11.2 billion, down 4% year over year on a reported basis and 5% currency-neutral. NIKE Brand revenue also fell 4%, to $11.0 billion. Nike attributed the overall decline primarily to weakness in Greater China and EMEA, partly offset by growth in North America. Nike’s Q1 FY2027 results
The quarter’s figures point in different directions. Gross margin rose 60 basis points to 42.8%, while net income fell 2% to $712 million and diluted earnings per share were $0.48. Inventory was $7.8 billion at August 31, down 3% year over year. Nike attributed the margin improvement primarily to lower warehousing and logistics costs; that is not evidence by itself that consumer demand strengthened.
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Direct sales and digital are still falling
NIKE Direct revenue was $4.1 billion, down 8% year over year on a reported basis and 9% currency-neutral. Within that channel, NIKE Brand Digital fell 13% and Nike-owned stores fell 5%. Wholesale revenue was $6.8 billion, down 1%.
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The channel shift has changed over time. For FY2026, Nike reported $46.4 billion in revenue, flat year over year on a reported basis and down 2% currency-neutral. Wholesale revenue was $27.5 billion, up 6%, while NIKE Direct was $17.7 billion, down 6%; NIKE Brand Digital declined 12%. In Q1 FY2027, wholesale also slipped, so the latest quarter was not simply a case of consumers moving from Nike’s own channels to growing wholesale sales. These figures describe channel performance, not why individual customers chose to buy or not buy Nike. Nike’s FY2026 and Q1 FY2027 results
Converse remains a significant weak spot
Converse revenue was $263 million in Q1 FY2027, down 28% year over year. Nike has said it is taking action to reposition NIKE Sportswear, Jordan Brand and Greater China as it works to strengthen parts of the business beyond performance products.
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What Nike expects next
Nike forecast that FY2027 revenue would decline by a high-single-digit percentage. It also estimated an effective tax rate in the mid-20% range and adjusted diluted EPS of $1.15 to $1.35, excluding about $0.15 per share of Pace restructuring expense. These are management’s forward-looking estimates, not reported outcomes. Nike’s Q1 FY2027 results
Where Nike says it is gaining traction
There are some positive indicators, though they are narrower than the company’s overall challenges. In its FY2026 earnings-call transcript, Nike said it gained 5 percentage points of running market share in statement footwear across Western Europe and North America. Management also said wholesale growth and retail sales comps with Foot Locker were positive for the first time in four years. Those are company-reported claims, not independently validated measures, and they do not establish that the broader recovery is complete. Nike’s FY2026 earnings-call transcript
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CEO Elliott Hill said in the October 2026 results release that “The Sport Offense is driving measurable progress across our performance business, and we introduced Pace to help us accelerate and scale that momentum across NIKE.” He also said the company had “more work to do in NIKE Sportswear, Jordan Brand and Greater China.” These statements capture the uneven picture: management sees momentum in performance while acknowledging pressure in other businesses and regions. Nike’s Q1 FY2027 results
What Pace is—and what it does not prove
Pace is an operating-model transformation that builds on Nike’s earlier cost-realignment plan. The company says it is modernizing its global supply chain, establishing an India campus for enterprise capabilities, realigning to three geographies and streamlining the organization.
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Nike estimates that Pace will produce approximately $2.5 billion in cumulative savings through FY2031. It also estimates approximately $1.0 billion in pre-tax charges through FY2031, in addition to approximately $0.3 billion of severance costs recognized in FY2026. The savings estimate is before those expected charges and any future reinvestment; Nike says it depends on assumptions and actual results may differ materially. The projected savings are neither achieved results nor a net-savings figure. Nike’s Q1 FY2027 results
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The company results show weaker revenue and sales in several channels and businesses, but they do not directly count customers who have left or measure customer trust, brand preference or purchase intent. Revenue changes are not the same as a customer-sentiment survey, and the available figures cannot establish a single cause for the declines.
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Nike’s FY2026 shareholder letter described the recovery as uneven: “Progress has been encouraging, but we know this comeback will not be a straight line. There are areas where we are gaining traction and others where we still have important work ahead.” That remains a useful way to read the latest results: running-market-share gains in selected markets are encouraging, but the Q1 FY2027 decline and FY2027 outlook show that progress has not yet spread broadly enough to remove the pressure. Nike’s FY2026 shareholder letter
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