Nike’s market value and earnings have fallen sharply since Hill returned to the company in October 2024. On Thursday, the sportswear giant announced another round of job cuts and forecast a steeper-than-expected decline in sales and profit for the fiscal year ending in May 2028.
The company has been rebuilding relationships with wholesale retailers, shifting more attention towards performance sportswear and simplifying its operations. However, revenue continues to weaken across both wholesale and direct sales.
China remains a major challenge. Nike said stabilising the market would take multiple seasons and continue to weigh on profitability. The sportswear and Jordan brands are also under pressure, together with Greater China accounting for more than half of Nike’s sales.
Nike shares fell to their lowest level in about 12 years on Friday, while investors await the company’s November 16-17 investor day for more details on Hill’s strategy.
Most of the savings from the restructuring are not expected until fiscal 2029 and 2030, extending the timeline for the turnaround.
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