S&P Sees Nike Revenue Down >7% in FY27, Cash Burn $1.2B; Analysts Slash Ratings
NKE is trading near its 52-week low of $31.97 (8.2% above the low).
Summary
S&P now forecasts Nike revenue down more than 7% in fiscal 2027 and lower again in 2028, with leverage climbing to ~1.0x and ~1.4x and roughly $1.2B in annual cash burn for 2–3 years. Multiple firms cut ratings and price targets after the Q1 report, citing an expected 7–9% revenue decline, weak sales, and heavy promotions. The stock is down 47% year-to-date and 77% over five years. Separately, Nike is restructuring into three regions, folding Greater China into a wider Asia-Pacific unit, and will sell products through Google's Gemini chatbot starting in June. The company is also exploring a Formula 1 sponsorship and licensing deal for 2027 teamwear, with exploratory talks ongoing.
At the time of this announcement, NKE was trading at $34.60 on NYSE in the Trade & Services sector, with a market capitalization of approximately $51.6B. The 52-week trading range was $31.97 to $70.44. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.