Nike’s weak outlook drags JD Sports shares lower

Shares of JD Sports fell around 2% on Wednesday after Nike ↘ 0.02% reported its fiscal fourth-quarter results and warned that its turnaround will take longer than expected, projecting further revenue declines through the first half of fiscal 2027.finance.yahoo+2

Nike Beats Estimates but Outlook Disappoints

Nike posted fiscal fourth-quarter revenue of $10.97 billion, topping Wall Street's consensus estimate of $10.86 billion but still marking a 1% decline from the prior-year period's $11.10 billion. Adjusted earnings per share came in at 20 cents, ahead of the 13 cents analysts had expected, though the quarter was flattered by an anticipated tariff refund of nearly $986 million after the Supreme Court struck down many of President Donald Trump's global duties.cnbc

The real concern for investors lay in the guidance. Nike CEO Elliott Hill said the company does not expect the operating environment to improve over the next six months, according to remarks posted by FirstSquawk on X. Management guided for fiscal 2027 revenue to decline in the low-to-mid single digits, extending a prolonged stretch of falling sales under its ongoing turnaround effort.investing+2

China Weakness Weighs Heavily

China remains the most acute pressure point for Nike. Revenue in the Greater China market dropped 12% to $1.30 billion in the quarter, even as the figure beat analyst expectations of $1.24 billion. North America, Nike's largest market, posted a 3% revenue gain to $4.83 billion but fell short of consensus estimates.cnbc

Nike shares, already down more than 35% year to date, slid another 3.6% in premarket trading on Wednesday to around $39.55, approaching a fresh multi-year low.morningstar+1

JD Sports Caught in the Downdraft

JD Sports was down 2.3% at 82.78p in London trading as investors assessed the read-across from Nike's results. The British retailer is one of Nike's largest wholesale partners globally, making it particularly sensitive to shifts in the sportswear giant's demand outlook. According to Reuters, Nike flagged a prolonged turnaround as its China slump and weak forward guidance weighed on sentiment.reuters+1

The weakness in JD Sports appeared stock-specific rather than part of a broad sector selloff, reflecting the retailer's concentrated exposure to Nike's brand portfolio.finance.yahoo+1