Nike shares fell nearly 10% in after-hours trading on Thursday, October 1, after the sportswear company forecast a further decline in annual sales and announced more job cuts. The company introduced its Pace restructuring program alongside fiscal first-quarter results, setting a target of USD 2.5 billion in cumulative savings through fiscal 2031.
Nike shares closed the regular session at USD 35.15, down 0.71%, before falling to approximately USD 31.77 in extended trading.
The decline followed its October 1 earnings announcement, which included a forecast for annual revenue to fall by a high-single-digit percentage.
The company expects adjusted earnings per share of USD 1.15 to USD 1.35 for fiscal 2027. That range excludes approximately USD 0.15 per share in restructuring expenses tied to Pace. Nike also expects its annual tax rate to reach the mid-20% range.
Quarterly revenue fell 4% to USD 11.21 billion, below the USD 11.32 billion analysts expected. Sales declined 5% after removing currency effects. Meanwhile, Greater China revenue dropped 26% on that basis, extending the weakness in one of Nike’s major markets.
Net income fell 2% to about USD 712 million, while diluted earnings per share reached USD 0.48. However, lower warehousing and logistics costs helped gross margin rise by 0.6 percentage points to 42.8%. Nike Direct revenue declined 8%, including a 13% drop in digital sales.
Chief Executive Elliott Hill confirmed the planned workforce reductions in a message to employees. “This work will result in fewer roles across Nike,” he wrote. Decisions about affected positions will begin in calendar year 2027 and continue beyond that year.
Nike is yet to determine the number of jobs or specific locations involved. Hill said employees affected by the changes would receive information directly from their leaders. The company will also complete required local consultation processes before finalizing proposals.
According to its SEC filing, Nike expects approximately USD 1 billion in pretax restructuring charges through fiscal 2031. Most will cover severance and other employee costs. These charges come in addition to roughly USD 300 million in severance expenses recognized during fiscal 2026.
The company expects to record about USD 300 million of the new charges in fiscal 2027. Its savings target excludes restructuring costs and future reinvestment. Nike also said actual savings and expenses could differ from its estimates as implementation proceeds.
Pace builds on the cost-reduction plan Nike announced in March 2026. It includes changes to the global supply chain, a new campus in Bengaluru, India, and a move to three geographic divisions. The program also includes further organizational changes to reduce costs.
The divisions will comprise the Americas, Asia Pacific and Greater China, and Europe, the Middle East and Africa. Nike expects teams to adopt the structure in fiscal 2028. The Asia Pacific and Greater China leadership team will operate from Singapore.
The Bengaluru campus will support Nike, Jordan Brand and Converse. Existing employees in India will move there in phases, with expansion planned over several years.
Nike plans to provide further details about its growth strategy and financial targets at its November 16–17 Investor Day.
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