Market Reaction
JD Sports shares fell about 2% on Wednesday after Nike signaled that its sales turnaround remains a work in progress and projected further revenue declines.
Nike Fiscal Q4 Performance
Nike reported a 1% decline in revenue for its fiscal fourth quarter and warned of additional drops through the first half of fiscal 2027. Sales in Greater China fell 17% on a constant‑currency basis, steeper than the 10% decline in the prior period, though better than the 20% drop the company had projected three months earlier. Greater China represents roughly 15% of Nike’s annual revenue and is its third‑largest market globally. In North America, revenue rose 3% as Nike rebuilt wholesale relationships that had been reduced under former CEO John Donahoe’s direct‑to‑consumer strategy.
Earnings and Share Performance
On an adjusted basis, Nike earned 20 cents per share, surpassing analyst estimates of 13 cents according to LSEG data. Nike’s shares have fallen 35% year‑to‑date and slipped an additional 3% in pre‑market trading on the day of the report.
Implications for JD Sports
The modest top‑line beat did little to convince investors that CEO Elliott Hill’s nearly two‑year revival effort is gaining meaningful traction, leading to the 2% dip in JD Sports’ share price.