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Get filing alertsNIKE launches $2.5B savings program 'Pace' as Q1 revenue falls 4% to $11.2B
Filed October 1, 2026 · Period ending October 1, 2026 · ~1 min read
Key Changes
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NIKE announced a multi-year cost-cutting program called Pace, targeting $2.5 billion in cumulative savings through fiscal 2031.
Item 2.05 verify on EDGAR → -
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The program is expected to incur about $1.0 billion in pre-tax charges, primarily for employee severance, on top of $0.3 billion already recognized in fiscal 2026.
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Q1 FY27 revenue fell 4% to $11.2 billion, with currency-neutral revenue down 5%, driven by weakness in Greater China and EMEA.
Exhibit 99.1 view on EDGAR → -
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Diluted EPS was $0.48, down from $0.49 a year earlier, while gross margin expanded 60 basis points to 42.8%.
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Fiscal 2027 guidance calls for high-single-digit revenue decline and adjusted diluted EPS of $1.15 to $1.35, excluding about $0.15 of Pace restructuring expenses.
Exhibit 99.1 view on EDGAR →
Summary
NIKE announced a major restructuring program called Pace, which expands on its earlier cost realignment plan. The program aims to deliver $2.5 billion in cumulative savings through fiscal 2031, but it will also result in about $1.0 billion in pre-tax charges, mostly for employee severance, with $0.3 billion hitting fiscal 2027.
The company is reorganizing into three geographic units, optimizing its supply chain, and establishing a new campus in India. At the same time, NIKE reported first-quarter results showing a 4% revenue decline to $11.2 billion, with particular weakness in Greater China and EMEA. Gross margin improved to 42.8%, but diluted EPS slipped to $0.48.
The company also provided fiscal 2027 guidance for a high-single-digit revenue decline and adjusted EPS of $1.15 to $1.35. For investors, the key takeaway is that NIKE is undertaking a significant cost transformation while facing ongoing revenue pressure. The savings target is substantial, but the upfront charges and continued sales declines mean the benefits will take time to materialize.
Section-by-Section Diff
Event · Item 2.05 — Costs Associated with Exit or Disposal Activities
Item 2.05 — Costs Associated with Exit or Disposal Activities filed; see Key Changes for terms.
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the Company announced a multi-year enterprise program, which includes and builds upon the previous cost realignment plan announced in March 2026, collectively known as Pace (the "program")
NIKE is expanding its existing cost realignment plan into a broader multi-year program called Pace. The program aims to improve productivity, organizational effectiveness, and reduce the company's cost structure.
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The Company expects approximately $0.3 billion to be recognized in fiscal 2027, with the remainder expected to be recognized through fiscal 2031.
About $0.3 billion of the charges will hit fiscal 2027, with the rest spread through fiscal 2031. Most charges will result in future cash expenditures.
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The Company expects the program to deliver approximately $2.5 billion in cumulative savings through fiscal 2031.
NIKE projects roughly $2.5 billion in cumulative savings from the program through fiscal 2031. This savings estimate is stated before the expected pre-tax charges and any future reinvestment.
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further optimize the Company’s global supply chain, better align the Company’s organizational structure to support its strategic goals, including through the establishment of a new campus in India and realigning the Company’s operating model into three geographies, as well as further streamlining of the organization to reduce costs
The program includes supply chain optimization, a new campus in India, and a reorganization into three geographic operating units. These structural changes are intended to reduce costs and improve efficiency.
Event · Item 2.02 — Results of Operations and Financial Condition
NIKE issued a press release disclosing financial results for the fiscal quarter ended August 31, 2026.
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Today NIKE, Inc. (the "Company") issued a press release disclosing financial results for the fiscal quarter ended August 31, 2026.
NIKE announced that it issued a press release with financial results for the fiscal quarter ended August 31, 2026. The release is furnished as Exhibit 99.1, but the 8-K body does not include the actual figures.
Event · Exhibit 99.1
NIKE reports Q1 FY27 revenue down 4% to $11.2B, EPS $0.48, and announces Pace restructuring with $2.5B savings target.
Added in current filing · view on EDGAR →
Gross margin expanded 60 basis points to 42.8 percent
Gross margin improved 60 basis points to 42.8%, primarily due to lower warehousing and logistics costs. This margin expansion occurred despite the revenue decline.
Added in current filing · view on EDGAR →
Diluted earnings per share was $0.48
Diluted EPS was $0.48, down from $0.49 in the prior-year quarter. Net income declined 2% to $712 million.
Added in current filing · view on EDGAR →
NIKE expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion of pre-tax charges, primarily consisting of employee-related costs, through fiscal 2031, in addition to approximately $0.3 billion of severance costs recognized in fiscal 2026. NIKE expects approximately $0.3 billion to be recognized in fiscal 2027.
NIKE announced Pace, an operating model transformation that includes supply chain modernization, a new India campus, a realignment to three geographies, and further cost reductions. The program targets $2.5 billion in cumulative savings through fiscal 2031, with $1.0 billion in pre-tax charges plus $0.3 billion of prior severance costs.
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Figures/quotes linked to EDGAR · Narrative written by AI · Oct 1, 2026 · How we verify