Nike Faces Weak Sales, Job Cuts and China Pressure as Turnaround Struggles
Nike is facing falling sales, fresh cost cuts and pressure in China and Jordan as CEO Elliott Hill works to revive the sportswear giant.
Nike is facing fresh questions over its turnaround after reporting weaker quarterly sales and announcing another cost-cutting programme that includes employee-related expenses and restructuring.
The sportswear giant reported first-quarter fiscal 2027 revenue of $11.2 billion, down 4% from a year earlier. Nike Direct revenue fell 8%, while digital sales declined 13%. Greater China was particularly weak, with revenue dropping 22% on a reported basis and 26% on a currency-neutral basis. Jordan Brand revenue also fell by a mid-teens percentage.
Nike has launched a new operating transformation called Pace, which it expects to generate around $2.5 billion in cumulative savings through fiscal 2031. The programme is expected to involve additional restructuring and severance costs, although Nike has not specified how many jobs could be affected.
The company is also dealing with a sharp decline in its stock price. Shares ended 2025 at $63.71 and closed at $35.15 on October 1, before falling further in after-hours trading following the earnings announcement.
Competition is another challenge. Brands including Adidas, On and Hoka are gaining ground across different sportswear categories, while Nike has been adjusting its strategy to focus more heavily on performance products.
The company is also reducing the frequency of some Jordan retro releases after acknowledging oversupply.
Nike remains a global sportswear powerhouse, but declining sales, China weakness, restructuring and tougher competition show that even the Swoosh needs a new game plan. “Just Do It” apparently comes with a restructuring budget these days.
