Key Points

- Nike's stock drops after weak sales and withdrawal of annual revenue target
- Analysts warn that turnaround plans may not yield results as quickly as anticipated
- Incoming CEO Elliott Hill faces tough task in reviving the company
- Market share loss to competitors continues to be a concern
- Nike's Q1 earnings beat expectations, but full-year guidance is withdrawn

Nike's recent struggles have continued as the athletic gear maker reported weak sales, causing its stock to drop. Analysts are cautioning that the turnaround plans set in motion may not materialize as quickly as investors had hoped. The Spring 2026 fashion cycle could prove to be a challenging period for Nike, according to one analyst.

On Wednesday, Nike joined other big stocks like Lamb Weston in moving lower in the pre-market session. U.S. stock futures were down, with the Dow futures falling approximately 100 points. Guggenheim Securities equity research analyst Bob Drbul discussed Nike's quarterly earnings results and the challenges that new CEO Elliott Hill will face.

Investors were taken aback as Nike's shares dipped about 6% in premarket trading following the company's decision to withdraw its annual revenue target. This move has left many unsure about the timeline for a turnaround under CEO Elliott Hill. The road ahead for Nike may require further adjustment of expectations before any significant progress can be made.

Despite posting better-than-expected earnings in Q1 of 2025, Nike's stock saw a significant drop after the company announced the withdrawal of its full-year financial forecast. Additionally, the postponement of its first investor day in seven years added to the uncertainty surrounding the sportswear giant's future.

Overall, Nike continues to face challenges in the competitive athletic gear market. The withdrawal of financial guidance, coupled with ongoing market share loss to competitors, signal a tough road ahead for the company. As new CEO Elliott Hill takes the reins, investors are waiting to see how he will navigate these challenges and steer Nike back on course.

About NKE

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells men's, women's, and kids athletic footwear, apparel, equipment, and accessories worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. In addition, it sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. The company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel. Additionally, it licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. The company sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.

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