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Nike Stock Falls 10% After Sales Miss and Layoff Plan
Why did Nike stock fall 10%?
Nike (NKE) stock fell about 10% on Friday to its lowest level in over a decade after weak first-quarter sales, a forecast of falling annual sales and new 2027 layoff plans.
Key numbers
| Q1 revenue | $11.21B-4% vs a year ago |
|---|---|
| Greater China revenue | $1.18B-26% excluding currency swings (-22% reported) |
| FY2027 revenue outlook | High-single-digit declineNike's own forecast |
| FY2027 adjusted EPS outlook | $1.15-$1.35Q1 EPS $0.48 vs $0.43-0.44 expected |
| Pace cost savings by FY2031 | $2.5B~$1B in related charges |
| Share price this year | About -45%Some reports say -48%; one-day drop 8-10% by source (per [2]) |
What happened
Nike (NKE) stock fell about 10% on Friday to its lowest level in over a decade after weak first-quarter sales, a forecast of falling annual sales and new 2027 layoff plans. Sales fell 4% from a year earlier to $11.21 billion, a little below the $11.32 billion Wall Street expected. In Greater China, sales dropped 26% after adjusting for currency swings. Nike now expects sales to fall by a high single-digit percentage this fiscal year, and it launched a plan called Pace to save $2.5 billion by 2031, with layoff decisions starting in 2027.
Why it matters
Nike's drop shows that even one of the world's best-known sportswear brands is struggling to win shoppers back, especially in China, where sales fell by about a quarter. Layoffs will mean fewer jobs at the company, and a falling share price weighs on anyone who owns it, including through retirement funds. Rivals Adidas and Puma barely moved, which suggests the problems may be specific to Nike rather than the whole industry.
Who this affects
- MarketbearishLow impact
- Sportswear investors face fresh doubts about Nike's turnaround.
- CompanybearishHigh impact
- Shareholders face falling sales, layoffs and a decade-low share price.
- CompetitorsbullishLow impact
- Adidas and Puma shares edged higher after Nike's results.
- IndustrybearishMedium impact
- Weak China demand is a warning for global sportswear makers.
Nike vs Adidas, Puma
| NikeNKE | -10% | -45% |
|---|---|---|
| AdidasADS.DE | +0.5% | — |
| PumaPUM.DE | +1.5% | — |
As of 2026-10-02
How we got here
Nike reports first-quarter results after the market closes; shares slide in after-hours trading.
Nike unveils Pace plan targeting $2.5B in savings through fiscal 2031.
Shares fall about 10% in Friday trading, leaving them down roughly 45% this year.
Adidas and Puma trade higher in Europe despite Nike's sell-off.
What to watch
- Nike's Investor Day, where it plans to detail its next phase of growth strategy (per).2026-11-16
- Whether Greater China sales stabilize after the 26% quarterly drop.Q4 2026
- Decisions on which roles are cut begin under the Pace plan.2027
Educational content only. Not investment advice.
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