Nike reported fiscal 2027 first-quarter revenue that missed analyst estimates and forecast a full-year revenue decline. The company announced a new operating model and plans additional layoffs, with CEO John Donahoe warning of job cuts next year. Shares fell over 8% in pre-market trading and hit their lowest level in 12-13 years. Sales in China also plunged, compounding investor concerns.
IllustrationThree investment banks—Barclays, Oppenheimer, and Piper Sandler—have lowered their price targets for Nike Inc. Barclays cut its target from $52 to $48 on September 23. Oppenheimer reduced its target from $60 to $52. Piper Sandler lowered its target from $45 to $38 on September 28. None of the reports provided specific reasons for the downgrades. The revisions reflect bearish adjustments in the banks' valuations of the sportswear giant.
Reference imageTopsports International Holdings, China's largest sportswear distributor, saw its stock fall below HK$1 per share, entering penny stock territory, after Nike announced it will terminate Topsports' online sales authorization in China by January 1, 2027. The online business contributed 22% of Topsports' revenue. Topsports relies on Nike and Adidas for over 85% of its revenue. The company is attempting to transition to a brand operator by securing exclusive rights for smaller brands, but analysts say the transformation will take years.
IllustrationOn Holding AG held an investor day in Zurich on September 22, 2026, unveiling a three-year strategic plan targeting net sales of at least CHF 5.6 billion by 2029, driven by high-teens annual growth. The company announced expansion into football and golf, with football products expected in 2027 following the signing of Kylian Mbappé. The board authorized its first-ever $1 billion share buyback program. On also targets an adjusted EBITDA margin of at least 22% by 2029.
Reference imageFrench footballer Kylian Mbappé has ended his nearly 20-year partnership with Nike to sign with Swiss sportswear brand On, marking On's entry into the football market. The deal, announced on September 18, includes cash and equity, with Mbappé participating in product development. On's first football boots are planned for 2027. On also appointed Thierry Henry as director of football. Analysts view the move as a direct challenge to Nike and Adidas.
Reference imageFrench football star Kylian Mbappé has ended his long-term partnership with Nike and signed a sponsorship deal with Swiss sportswear brand On. On, traditionally known for running shoes, is using the deal to expand into football boots, with Mbappé as the face of the initiative. The partnership includes both cash and equity components, and On's football boots are expected to launch in retail in 2027. Financial terms were not disclosed.
Reference imageFC Barcelona’s 2025-26 accounts show total debt set to exceed €2 billion, driven by the unfinished Camp Nou renovation now expected in 2028. Despite becoming the second football club to surpass €1 billion in revenue, the club posted a €17.8 million post-tax loss. Wage bills rose 12% to €573.7 million, and short-term liabilities of €905 million far exceed short-term assets. President Joan Laporta faces ongoing financial strain as the club relies on economic levers and debt refinancing.
Nike shares plunged over 8% this period after reporting fiscal 2027 first-quarter revenue that missed estimates and forecasting a full-year revenue decline. The company announced a new operating model and additional layoffs, with CEO John Donahoe warning of job cuts next year, while a sharp drop in China sales compounded investor concerns, sending shares to their lowest level in 12-13 years.
This period continued the core development from the previous digest: Mbappé's departure from Nike to On. Further details emerged, confirming the deal includes an equity component and will launch a signature sub-brand. The market reacted visibly, with On shares rising and Nike shares dipping, suggesting investors view this as a material threat to Nike's football position.
Nike faced a direct competitive blow this period as Swiss sportswear brand On signed football star Kylian Mbappé away from Nike, ending his long-term partnership with the company. On, traditionally a running shoe brand, is using the signing to expand into football, with Mbappé serving as global ambassador and participating in product development. The deal includes cash and equity components, with premium football boots set to launch in 2027.
Nike reported fiscal 2027 first-quarter revenue that missed analyst estimates and forecast a full-year revenue decline. The company announced a new operating model and plans additional layoffs, with CEO John Donahoe warning of job cuts next year. Shares fell over 8% in pre-market trading and hit their lowest level in 12-13 years. Sales in China also plunged, compounding investor concerns.
French football star Kylian Mbappé ended his long-term Nike contract and signed a multi-year endorsement and equity deal with Swiss sportswear brand On, leading its expansion into football boots. On, backed by Roger Federer, aims to challenge Nike and Adidas in the soccer market. The partnership includes a signature sub-brand and product collaboration. On shares rose following the announcement, while Nike shares dipped.
Swiss sportswear brand On has signed French football star Kylian Mbappé from Nike, ending his long-term Nike partnership. On, traditionally a running shoe brand, is expanding into football boots with Mbappé as global ambassador. The deal includes cash and equity components, with premium football boots launching in retail in 2027. Mbappé will wear On-developed products in matches and participate in product development.
The sole matched event this period concerns Nike competitor Lululemon's sharp sales decline, with no direct Nike developments. Lululemon reported a 4% revenue drop in Q2 2026, a 12% fall in Americas comparable sales, and lowered its full-year guidance. This serves as an indirect competitive landscape signal, but there are no updates on Nike's own business or finances.
No events directly involving Nike appeared in this period. The sole matched event concerns FC Barcelona's financial troubles, which are tangentially relevant given Nike's role as the club's kit sponsor.
Nike veteran Heidi O'Neill is set to take over as CEO of Lululemon next week, as the company faces deepening troubles. Lululemon reported a 4% sales decline in Q2 and cut its full-year 2026 guidance for the third time, sending shares down 18% to an eight-year low. O'Neill will inherit reputational damage, a proxy battle with the founder, and other challenges upon her arrival.
Lululemon Athletica reported a 4% year-over-year revenue decline to $2.4 billion in Q2 2026, with global comparable sales down 9% and Americas comparable sales falling 12%. Women's leggings sales dropped approximately 20%. Jim Cramer called the stock "thoroughly broken" and "too risky to short." Competitors Alo Yoga and Vuori gained market share as Lululemon's athleisure share fell to 43.9%. The company cut its fiscal 2026 revenue forecast to $10.35-$10.50 billion and EPS guidance to $9.48-$9.73.
Lululemon Athletica reported a 4% decline in second-quarter sales to $2.4 billion, with comparable sales dropping 10% globally and 12% in the Americas. Profits fell 11.2% despite tariff refunds. The company cut its full-year revenue outlook for the third time in 2026, now projecting $10.35-$10.50 billion. Shares plunged 18% in after-hours trading to an eight-year low below $100. Incoming CEO Heidi O'Neill, a Nike veteran, takes over next week amid reputational damage from negative media, a proxy battle with founder Chip Wilson, and a Great Wall of China event backlash.