Nike Slumps 8% as Investors Lose Patience with Restructuring Timeline

Nike's shares plummeted by 8% on Friday after the sportswear company released another disappointing outlook, pushing its stock to a near-12-year low. The decline in sales and profit forecast for the fiscal year ending May 2028 is steeper than expected.

CEO Elliott Hill has been attempting a multiyear turnaround at Nike, but it seems investors are losing patience. Most of the restructuring savings won't materialize until fiscal 2029 and 2030, which raises concerns about how long the recovery could take.

The company's largest businesses, including sportswear, China, and the Jordan brand, are still under pressure. Hill has been rebuilding wholesale relationships and simplifying operations but revenue continues to decline across both wholesale and direct channels.

Nike is planning an investor day on November 16-17, where investors will be looking for a clearer path back to sustainable growth and stronger profitability. The event will be a critical test for the company's turnaround efforts.