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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsNike’s latest results show an uneven recovery, not a completed comeback. For the quarter ended August 31, 2026, revenue fell 4% to $11.2 billion, and the company forecast a high-single-digit revenue decline for fiscal 2027. Nike reports progress in performance running, but weakness in direct sales, Converse, Greater China and EMEA shows how much work remains.
What Nike’s latest results say about its recovery
In results released October 1, 2026, Nike reported fiscal Q1 2027 revenue of $11.2 billion, down 4% year over year on a reported basis and 5% on a currency-neutral basis. 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 North American growth. Nike’s Q1 FY2027 results provide the company’s full breakdown.
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| Measure | Fiscal Q1 2027 result |
|---|---|
| NIKE, Inc. revenue | $11.2 billion, down 4% reported and 5% currency-neutral year over year |
| NIKE Direct revenue | $4.1 billion, down 8% reported and 9% currency-neutral |
| NIKE Brand Digital | Down 13% |
| Nike-owned stores | Down 5% |
| Wholesale revenue | $6.8 billion, down 1% |
| Converse revenue | $263 million, down 28% |
| Gross margin | 42.8%, up 60 basis points |
| Net income and diluted EPS | $712 million, down 2%; $0.48 per diluted share |
The margin improvement does not offset the demand picture: Nike said it was primarily driven by lower warehousing and logistics costs. Inventory stood at $7.8 billion on August 31, down 3% year over year; that figure alone does not establish that consumers are buying more.
Why the sales mix matters
Direct sales remain under pressure, but the latest quarter also complicates a simple story in which Nike-owned channels are weak and wholesale is thriving: wholesale revenue declined 1% in Q1 FY2027 too.
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For context, Nike’s fiscal 2026 revenue was $46.4 billion, flat on a reported basis and down 2% currency-neutral. Wholesale grew 6% to $27.5 billion, while NIKE Direct fell 6% to $17.7 billion; NIKE Brand Digital declined 12%. Those results, reported in Nike’s FY2026 annual results, describe channel performance, not why any individual customer chose to buy—or not buy—Nike. The Q1 pattern suggests the challenge is no longer confined to direct sales.
Where Nike says it is gaining ground—and where it is not
Performance running shows a possible foothold
On Nike’s FY2026 earnings call, management said the company gained 5 percentage points of running market share in statement footwear across North America and Western Europe. Nike also said wholesale growth and retail sales comparisons with Foot Locker were positive for the first time in four years. These are company-reported indicators, not independently verified measures, and they cover selected markets and categories rather than Nike’s entire business. The FY2026 earnings-call transcript records management’s claims.
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Sportswear, Jordan Brand and key regions still need attention
Nike CEO Elliott Hill said the company had “more work to do in NIKE Sportswear, Jordan Brand and Greater China” and was taking deliberate actions to strengthen those businesses for the long term. The Q1 results underscore the regional challenge: Greater China and EMEA were the primary sources of NIKE Brand’s decline, while North America provided an offset. Converse, which reported $263 million in quarterly revenue, was down 28%.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →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 framing fits the contrast between reported running gains and continuing company-wide weakness. The FY2026 shareholder letter contains the full statement.
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What Nike is changing, and what Pace does not prove
Nike says its Sport Offense approach is generating measurable progress in performance business. In its October 2026 release, the company also described actions to reposition NIKE Sportswear, Jordan Brand and Greater China. It introduced Pace, an operating-model transformation building on an earlier cost-realignment plan. Nike says the effort includes modernizing its global supply chain, establishing an India campus for enterprise capabilities, realigning to three geographies and streamlining the organization. These are management’s plans; their announcement is not evidence that the recovery has already worked.
Nike estimates that Pace will produce approximately $2.5 billion in cumulative savings through FY2031. The estimate is before approximately $1.0 billion in expected pre-tax charges through FY2031 and future reinvestment; Nike also recognized approximately $0.3 billion in severance costs in FY2026. The company says the savings depend on assumptions and actual results may differ materially. These are projected figures, not achieved or net savings.
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What Nike expects in fiscal 2027
Nike forecast a high-single-digit percentage revenue decline for FY2027. It also projected an effective tax rate in the mid-20% range and adjusted diluted EPS of $1.15–$1.35, excluding about $0.15 of Pace restructuring expense. These are forward-looking company estimates, not reported outcomes. The outlook makes clear that Nike itself does not expect the current recovery work to translate into near-term revenue growth.
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Can Nike win customers back?
The available company results do not count customers who have left Nike or directly measure customer trust, preference or purchase intent. Revenue, channel and market-share figures are business indicators, not a consumer-sentiment survey. They show where Nike’s business is weakening or gaining traction, but they cannot establish how many customers it has lost or why.
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For now, the strongest evidence supports an uneven, unfinished recovery: Nike reports selected running gains, yet Q1 FY2027 revenue and direct sales fell, wholesale also slipped, Converse contracted sharply, and the company expects revenue to decline further in FY2027. Whether its strategy can restore broader growth remains uncertain.
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