Nike Inc. shares fell 4% in trading after the company delivered a lower-than-expected full-year revenue forecast, signaling that its turnaround efforts are facing renewed headwinds.
Despite a modest quarterly earnings beat, the sportswear giant’s outlook was overshadowed by persistent weakness in China and a cautious tone from management regarding future growth.
Chief Executive Officer Elliott Hill indicated that the company’s strategic reset still faces significant obstacles.
The guidance miss suggests that the path to operational recovery is longer and more difficult than investors had hoped, casting doubt on the near-term efficacy of Hill’s turnaround plan.
The market reaction reflects growing skepticism about Nike’s ability to quickly regain momentum in key international markets.
The slump in China, a critical growth engine for the global apparel sector, remains a primary concern.