Nike's struggles test investor confidence in CEO Hill's turnaround effort
NKE•Nike forecast steeper-than-expected declines in sales and profit for the fiscal year ending in May 2028 and announced another round of job cuts. Shares fell nearly 10% in premarket trading after the company said most restructuring savings would not arrive until fiscal 2029 and 2030.
1. Turnaround timeline
Nike's market value and earnings have more than halved since CEO Elliott Hill returned in October 2024, while weakness in China and reliance on discounted lifestyle products continue to weigh on the business. The company said performance in sportswear, China and its Jordan brand remained problematic; together, those areas accounted for more than half of total sales.
2. Investor day ahead
Nike will hold its investor day on November 16 and 17, where analysts expect a clearer roadmap for restoring growth and profitability. Hill has moved to rebuild retailer relationships, refocus product development on sports and simplify operations, but revenue continues to decline in both wholesale and direct channels.
3. Challenges persist
Hill said stabilizing China would take “multiple seasons” and weigh on profitability. Nike is also reducing the number and frequency of retro Jordan sneaker launches after years of oversupply and discounting; Hill said the company had been “oversupplying our iconic retro product.”
