Nike Q1 FY27 10-Q: Greater China Revenue Plunges 26%, Pace Restructuring to Cost $1B
NKE is trading near its 52-week low of $31.97 (5.9% above the low) on elevated volume (4.8× avg).
Summary
Nike's Q1 FY27 10-Q details a 26% currency-neutral revenue decline in Greater China, a 28% drop at Converse, and quantifies the Pace restructuring at $1.0B in charges against $2.5B in expected savings.
Key Events · Earnings and Guidance · NKE
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Greater China Revenue Plunges 26%
Greater China revenue fell to $1.18B from $1.51B, a 26% currency-neutral decline, with EBIT down 34% to $248M. Wholesale revenue dropped 31% and NIKE Direct fell 18%.
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Converse Revenue Collapses 28%
Converse revenue fell to $263M from $366M, a 28% currency-neutral decline across all territories, with EBIT down 36% to $25M.
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Pace Restructuring Quantified at $1.0B
The Pace program will incur approximately $1.0B in pre-tax charges (primarily severance) through fiscal 2031, with $0.3B recognized in fiscal 2027, against $2.5B in expected cumulative savings.
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Operating Cash Flow Weakens
Cash provided by operations was $135M, down from $222M a year ago, driven by a $846M working capital drag from lower accrued liabilities and higher inventories.
Analysis · NKE · Manufacturing
Nike's Q1 FY27 10-Q confirms the revenue decline flagged in yesterday's 8-K but adds critical segment detail. Greater China revenue fell 26% currency-neutral with EBIT down 34% — a structural deterioration in a key growth market. Converse revenue collapsed 28%. The Pace restructuring program is now quantified at $1.0 billion in pre-tax charges against $2.5 billion in expected cumulative savings through fiscal 2031. Cash from operations was only $135 million, down from $222 million a year ago, reflecting working capital pressure. The Belgian Customs claim adds a new legal contingency with unquantifiable downside.
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In the 30 days to Oct 3, 2026, 28.9% of the 1668 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, NKE was trading at $33.85 on NYSE in the Manufacturing sector, with a market capitalization of approximately $50.2B. The 52-week trading range was $31.97 to $76.97. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.