Nike has said it expects a surprise 10% drop in quarterly revenue, as it faces growing competition from newer rivals such as On and Hoka.
The news sent Nike shares plunging more than 12% in after hours trading, which could mean a loss of $15bn in market value if the losses hold on Friday.
The world’s largest sportswear company also told investors it is facing weakening demand in international markets, including in China.
But Nike is optimistic that new products and a marketing campaign at the upcoming Olympic Games in Paris will help the company regain momentum with consumers.
“The Paris Olympics offers us a pinnacle moment to communicate our vision of sport to the world,” CEO John Donahoe said on the earnings call.
The company also lowered its outlook for the 2025 fiscal year.
It said direct-to-consumer business declined 8%, as some customers went for more trendy upstart brands.
“There’s a sense that Nike just hasn’t innovated enough,…
