Suffering doesn't end...

Shares of $NKE are down 8% after earnings.

Nike disappointed again, this time mainly with what lies ahead. The outlook is the main problem here. But first, the numbers:

Revenue fell 4% to $11.21 billion, analysts expected $11.33 billion

Earnings per share were $0.48

Gross margin rose 60 basis points to 42.8%, but the market is mainly focused on the outlook.

The company reinstated full-year guidance and expects revenue to decline by high single digits in fiscal 2027.

In June, Nike expected a low to mid single-digit decline for the first half, with a recovery in the second half driven by more than ten new shoe models. But if the first quarter ended at minus 4% and the full year is expected to be significantly worse, the second half must be even weaker. The turnaround is thus pushed to fiscal 2028 at the earliest, which Bank of America had predicted before the results.

Additionally, there is an announcement of layoffs starting in 2027.

Weak China and Europe, and continued declines in Sportswear and Jordan segments. Falling earnings also make investors nervous, especially those counting on the dividend. BofA's estimate implies a payout ratio around 107%. The dividend, after falling more than 40% this year and 81% from ATH, is over 4.5%.