Nike Stock Plummets on Disappointing Forecast

Nike Inc.'s (NKE) stock plummeted by nearly 9% after hours on Thursday, following CEO Elliott Hill's announcement that the company's fix for its struggling businesses would take time.

The company reported a full-year forecast that disappointed Wall Street analysts, with revenue expected to decline in the high single-digit range and adjusted earnings projected to be between $1.15 and $1.35 per share, excluding restructuring costs.

Nike's CFO Dave Denton stated that operating profit would fall by a greater percentage than revenue in fiscal 2027, and that supply cuts would continue to pressure revenue for the rest of the year and into fiscal 2028.

The company attributed the decline in sales to its sportswear, Jordan Brand, and Greater China businesses, with Nike Sportswear sales falling by a low double-digit rate and Jordan Brand sales falling by a mid-teens rate.