Nike shares drop 3.5% as China weakness and cautious outlook stall turnaround hopes

Investors remain skeptical of CEO Elliot Hill’s strategy after quarterly results failed to offset concerns over slowing demand in China and a conservative sales forecast.

By Handelsavisen Newsroom · Automated 2026-07-01 09:36 UTC · 1 min read

Nike Inc. shares fell 3.5% in pre-market trading on Wednesday, extending a period of investor skepticism regarding the sportswear giant’s strategic direction.

The decline followed the release of quarterly results that failed to reignite confidence in a swift operational turnaround under CEO Elliot Hill.

The company previously saw shares drop 4% after delivering a lower-than-expected full-year revenue forecast, which indicated that its broader turnaround efforts were facing renewed challenges.

The market’s negative reaction was driven primarily by a cautious sales outlook and persistent weakness in demand from China, a critical growth market for the company.

Despite any modest earnings beats, the guidance signals that headwinds remain significant, tempering hopes that the new leadership team has already stabilized the business.

This latest sell-off adds to recent pressure on Nike’s stock.

The company previously saw shares drop 4% after delivering a lower-than-expected full-year revenue forecast, which indicated that its broader turnaround efforts were facing renewed challenges.