Nike shares plunge after sneaker giant warns sales could fall by double digits

Nike’s shares plummeted Friday as investors grew wary about new CEO Elliott Hill’s turnaround plans after the struggling sneaker giant warned that sales could plunge by double digits.On Thursday, the company reported a 9% sales decline during the all-crucial holiday season quarter,— including a 17% slump in quarterly sales in China — and forecast a steeper-than-expected drop in fourth-quarter revenue.Nike said sales will be down in the “mid-teens range” for the quarter that ends in May in an earnings call.Wall Street had expected sales to be down by 11.4%.Hill — who took on the role in October to help the company regain lost market share — has laid out what he called a “Win Now” strategy, which includes boosting on-the-ground presence in five key cities such as Shanghai and Beijing.“The plan is there, (but) they are just not seeing results yet,” said Jay Woods, chief global strategist at investment banking firm Freedom Capital Markets.Nike stock fell as much as 9% after Friday’s opening bell — hitting its lowest level since the pandemic.

Shares were down 5% in midday trading.The Beaverton, Ore.-based company has lost 5% of its value so far this year — following a 30% plunge in 2024.“Nike is working to return to what made it special,” wrote BMO analyst Simeon Seigel in a research note.“This is clearly not for everyone as turns take time.”The company’s year-long struggle to reverse sliding revenues and reignite growth are deepening this year, with Nike honchos blaming weak consumer demand, a turnaround that hasn’t turned the corner yet and the impact of a 20% tariff on goods from China that went into effect at the start of March.Nearly one quarter of Nike’s merchandise is produced in China.“We are also navigating through several external factors that create uncertainty in the current operating environment, including geopolitical dynamics, new tariffs, volatile foreign exchange rates and tax regulations, as well as ...