Nike's struggles test investor confidence in CEO Hill's turnaround effort
NKE•Nike announced another round of job cuts and forecast steeper-than-expected sales and profit declines for the fiscal year ending in May 2028. Shares fell about 8%, and the company said most restructuring savings would not arrive until fiscal 2029 and 2030.
1. Turnaround faces delays
Nike's struggles are testing investor confidence in CEO Elliott Hill's turnaround strategy ahead of the company's investor day on November 16 and 17. The company announced another round of job cuts and forecast steeper-than-expected declines in sales and profit for the fiscal year ending in May 2028; most restructuring savings are not expected until fiscal 2029 and 2030.
2. Weakness across key areas
Nike again identified sportswear, China and its Jordan brand as problem areas, together accounting for more than half of total sales. Hill said stabilizing China would take “multiple seasons” and weigh on profitability. He also said Nike had oversupplied its iconic retro products and acknowledged a lack of energy in lifestyle products.
3. Shares fall
Shares fell about 8% in early trading after the forecasts. Since Hill returned in October 2024, Nike has moved to rebuild retailer relationships, refocus product development on sports and simplify operations, but revenue continues to decline across wholesale and direct channels.
