Nike expects sales to decline in the new fiscal year after persistent challenges in China weighed on first-quarter revenue. The company forecast adjusted earnings per share of $1.15 to $1.35 for the full fiscal year, below analysts’ projection of $1.68 a share. Nike’s fiscal first-quarter 2027 sales were reported at $11.2 billion, against an average estimate of $11.32 billion, while another earnings record listed $11.21 billion versus $11.33 billion expected. EPS was $0.48 compared with a $0.49 forecast, and inventory stood at $7.8 billion versus $7.96 billion expected. Gross margin rose 60 basis points to 42.8% in the quarter ended August 31, supported by lower warehousing and logistics costs. Shares fell 4% in extended trading after the results as investors assessed the pace of CEO Elliott Hill’s turnaround amid weak Chinese demand, stronger competition, promotions and product gaps.