Nike Inc. shares fell 4% in trading following the company's announcement of a lower-than-expected full-year revenue forecast.
The guidance miss signals that the sportswear giant's turnaround efforts are facing renewed headwinds, particularly in key international markets.
The primary drag on performance remains China, where sales have continued to decline amid intensifying competition from domestic brands and ongoing operational challenges.
This weakness in Asia contrasts with the tentative progress Nike reported in its most recent quarterly earnings, which had slightly exceeded analyst estimates and offered a brief reprieve for investors.
The downgrade in outlook raises questions about the sustainability of Nike's recovery strategy.
While the company has attempted to win back shoppers through product innovation and direct-to-consumer initiatives, the persistent softness in China suggests that structural market shifts are proving difficult to reverse.