Nike's Greater China revenue fell 26% in fiscal Q1 2027 while the Asia-Pacific region that includes Japan held roughly flat

Nike reported fiscal 2027 first-quarter revenue of $11.2 billion for the quarter ended August 31, down 4% from a year earlier on a reported basis and down 5% on a currency-neutral basis, the company said on October 1. The Nike Brand itself brought in $11.0 billion, also down 4%, which Nike attributed to declines in Greater China and EMEA that were only partly offset by growth in North America.

By channel, wholesale revenue was $6.8 billion, down 1%; Nike Direct — the company's own stores and digital business — was $4.1 billion, down 8% reported and 9% currency-neutral; and Converse was $263 million, down 28%.

The regional split is the sharpest part of the release. North America revenue rose 2% to $5.13 billion and EMEA fell 5% to $3.18 billion. Greater China fell 22% on a reported basis and 26% on a currency-neutral basis, to $1.18 billion — the steepest decline of any region. Asia Pacific & Latin America (APLA), the segment that contains Japan, though Nike does not break the country out separately, fell just 2% reported and was flat (0%) currency-neutral, at $1.46 billion. Operating profit told the same story: Greater China's EBIT dropped 34% to $248 million, while APLA's fell a comparatively modest 7%, to $324 million.

Gross margin rose 60 basis points to 42.8%, which Nike said mainly reflected lower warehousing and logistics costs; selling and administrative expense fell 3% to $3.9 billion; net income was about $0.7 billion, down 2%, with diluted earnings per share of $0.48. For the full fiscal year, Nike guided to a high-single-digit revenue decline and adjusted diluted EPS of $1.15 to $1.35, excluding roughly $0.15 of restructuring costs.

Nike also used the release to detail "Pace," a new operating-model transformation that builds on a cost-realignment plan it announced in March 2026 and that includes supply-chain changes, a new campus in India, and what it called "a realignment to three geographies" — without naming them — plus further organisational streamlining. It expects cumulative savings of about $2.5 billion through fiscal 2031 against roughly $1.0 billion of mostly employee-related charges, of which about $0.3 billion was recognised in fiscal 2026 and a further $0.3 billion is expected this year. CEO Elliott Hill said "the Sport Offense is driving measurable progress across our performance business," while adding the company still has "more work to do in NIKE Sportswear, Jordan Brand and Greater China" — though the release gave no separate revenue or profit figures for either Nike Sportswear or Jordan Brand.

Nike has never broken Japan out of APLA, so there is no country figure to carry here. But the segment's near-flat quarter against Greater China's collapse is itself the relevant number for every Japanese retailer carrying the brand, from ABC-Mart to Nike's own Harajuku and Ginza stores: demand across the region held up far better than in Nike's next-largest Asian market, even as the group cut its full-year outlook. The open question is what "a realignment to three geographies" eventually means for how Nike organises the product and inventory decisions that reach Japan — Nike has not yet said which three geographies, or where the line between them falls.