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Nike set for Q1 report as Wall Street weighs margins against weak demand
A Stifel price-target cut to $40 from $45 highlighted concerns that negative sportswear and Jordan trends may persist into FY2027, even as some categories show growth.
Nike, Inc. is scheduled to report its fiscal 2027 first-quarter results on October 1, with Wall Street focused on whether improving margins and selected performance categories can offset weak demand in its lifestyle business, according to Yahoo Finance.
Stifel lowered its price target to $40 from $45 on September 21 and kept a Hold rating. The firm expects a more promotional Western marketplace and a tougher gross-margin comparison in the fiscal fourth quarter, and it cut its FY2027 and FY2028 adjusted EPS estimates by $0.20 each, to $1.70 and $2.05.
While the report’s outlook is clouded by demand, there are signs of progress in parts of the portfolio. Yahoo Finance notes that performance grew mid-single digits in fiscal 2026, Running posted five straight quarters of double-digit growth, and Running added roughly $1 billion in revenue, while North American wholesale revenue rose 10% in the fourth quarter, helped by lower returns, cancellations, and discounts.
However, Stifel’s concern is that Nike’s strongest categories are not yet large enough to erase weakness elsewhere. Yahoo Finance says Sportswear declined double digits in the fourth quarter, management expects Sportswear and Jordan streetwear to remain negative through FY2027 even with improvement in the second half, and the two businesses together represent roughly half of revenue.