NIKE, Inc. (NKE): "Pain > Gain" = Mixed 1Q, Sequential 2Q/2H Softening & FY28 "Bleed"; Remain Underweight w/ PT to $33

J.P. Morgan reiterates Underweight on NIKE, Inc. (NKE) and lowers its Dec-27 price target to $33 from $40 (based on ~23x CY28E EPS of $1.45). NKE reported 1Q27 EPS of $0.48 vs. Street at $0.44, comprising a 4.3% Y/Y revenue decline (-5% c/c, below the -3.2% Street estimate and management's low-to-mid-single-digit guide), gross margin expansion of +60bps to 42.8% (above Street 42.5%), SG&A dollars down 2.6% Y/Y, and a 7.9% EBIT margin (above Street 7.1%). Management set the initial FY27 adj. EPS outlook at $1.15-$1.35, roughly 22% below the Consensus midpoint of $1.61, on high-single-digit revenue declines, continued gross margin pressure, and a mid-20s effective tax rate. Greater China revenues fell 26% c/c, the weakest region. J.P. Morgan cuts 2Q27 EPS by 30% to $0.37 (below Consensus $0.50), anticipating a double-digit revenue decline as management flagged ~400bps of incremental Y/Y headwinds (EMEA promo lapping, reduced Jordan volume/launch frequency). N/A DTC store closures and Gre