Nike Inc.’s shares fell to a five-year low after the company warned of another quarter of sales decline, sparking concerns about its turnaround strategy under new CEO Elliott Hill.
The sportswear giant reported a 17% slump in quarterly sales in China, citing weaker discretionary spending. Hill has laid out a “Win Now” strategy to boost on-the-ground presence in five key cities and clear out dated stock.
Analysts expect the pace of change to take several quarters. Barclays analysts project a turnaround in the second half of Nike’s fiscal year ending May 2026.
Hill has fast-tracked certain sneaker launches, including Pegasus Premium and Vomero 18, which helped post a smaller-than-expected drop in quarterly revenue and profit.
Nike’s shares have lost about 10.3% of their value so far this year, following a 30% plunge in 2024. Long-term shareholders are prepared to wait for positive results, but the company still faces challenges in stabilizing sales growth.
Source: https://www.reuters.com/business/retail-consumer/nike-trips-forecast-another-sales-decline-dims-quick-turnaround-hopes-2025-03-21