Nike Inc. shares tumbled after the retailer gave a surprisingly gloomy outlook for the year ahead, complicating Chief Executive Officer Elliott Hill’s efforts to turn around the business.

Nike has shown some gains in North America, its largest market, amid its turnaround, but the strength was offset by weakness in China.

Elliott Hill, the veteran Nike executive who came out of retirement to assume the CEO role, pleaded with employees to help turn the company around.

Nike is absorbing a handful of stock downgrades from Wall Street after saying revenue will decline throughout 2026.

Nike warned that its turnaround is taking longer than it expected, leading three Wall Street banks to downgrade the stock as investors lose patience.

Nike reported quarterly results that were a bit better than Wall Street’s expectations, but investors still didn’t appear convinced of the sneaker giant’s turnaround efforts.

Nike (NYSE:NKE) shares are down 11% in early Wednesday trading, reacting to a quarterly earnings report that beat estimates on the surface but delivered a forward outlook that rattled investors. The stock closed Tuesday at $52.

Nike ( NKE) is on the radar of analysts and investors after reporting a year-over-year decline in profit and issuing guidance below expectations. The report is being seen as an indication of an uneven recovery for the athletic apparel giant.

Still, Hill has been at the helm for only a year-and-a-half, and his turnaround deserves a few more quarters to succeed. Additionally, Nike's results have been impacted by one-time headwinds like tariffs. Keep an eye on the Q2 2027 target for a return to gross margin growth. If Nike misses that, it may be time to give up on the turnaround.

Shares of athletic apparel brand Nike (NYSE:NKE) fell 14.5% in the afternoon session after its first-quarter earnings report revealed deeper business weaknesses that overshadowed a profit beat.