Nike reported revenue of $11.2 billion for the first quarter of its fiscal year, a year-over-year decrease of 4%, and a decrease of 5% when calculated using a fixed exchange rate. Net profit fell by 2% to approximately $712 million, with earnings per share diluted at $0.48. However, there was a bright spot in gross margin, which increased by 60 basis points to 42.8%.

China remains one of the main challenges for this company; based on a fixed exchange rate, sales decreased by 26% in that quarter.

While announcing its financial results, Nike also launched an expansion and reorganization plan named Pace, with the goal of saving approximately $2.5 billion in total by the fiscal year 2031.

The plan includes modernizing Nike's global supply chain, opening new facilities in India, reorganizing operations into three geographical regions, and further reducing costs through organizational streamlining. The aforementioned streamlining will involve layoffs.

Nike has not yet disclosed how many employees will be affected, but according to a report by Reuters, CEO Elliott Hill told employees that this reorganization will ultimately result in a reduction of internal positions within the company. Decisions regarding which specific positions and locations will be affected are expected to be announced in 2027.

Performance outlooks triggered another round of heavy selling in Nike's stock price. NKE closed at $35.15 on Thursday during regular trading hours, down 0.71%. After the financial report was released, the stock price fell further by 8.71% in after-hours trading, to around $32.09.