Nike’s Turnaround Hits a Speed Bump on Disappointing Fiscal 2027 Guidance. Should Investors Run for the Exits?

Nike beat earnings expectations but missed on revenue in Q1 fiscal 2027, reporting a 4% year-over-year revenue decline to $11.21 billion. The company provided weak full-year guidance projecting high-single-digit revenue declines and significantly lower net income ($1.00-$1.20 per share GAAP vs. $2.10 in fiscal 2026). CEO Elliott Hill's turnaround efforts have been slow, with particular weakness in Greater China (down 22%) and DTC channels. The stock fell nearly 9% after-hours, and analysts suggest the valuation remains unattractive given the company's growth struggles.