Nike (NKE): Slashing Dunk supply by 50% to force scarcity [Q1 2027]

Nike is absorbing deep near-term revenue and margin pain — including a 26% China decline — to protect long-term premium brand positioning.

• Revenue contracted 4%: Q1 FY2027 revenue landed around $11.2 billion with EPS of $0.48, and the stock plunged over 9% after hours.
• Dunk supply cut ~50%: Nike intentionally slashed Dunk revenues to rebuild scarcity, a self-inflicted hit CFO Dave Denton framed as a roughly $200 million penalty for prior oversupply.

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