"The Nike turnaround is progressing slowly," Telsey Advisory Group analyst Cristina Fernandez said, adding that sales trends remain weak in large parts of the business such as sportswear and in international markets, and are unlikely to rebound before fiscal 2028.
Shares of European peers Adidas (ADSGn.DE) and Puma (PUMG.DE) dropped about 1% each.
Nike has been struggling to regain momentum after losing market share to rivals such as Anta, Li Ning and Hoka. The stock has already fallen about 35% this year.
Under Hill's plan, the company is refocusing on sports, accelerating product innovation and rebuilding wholesale partnerships.
"Launched a year and a half ago, CEO Elliott Hill's "Win Now" plan has brought cost reductions, more efficient inventory management, and a reorganization to align product development and marketing around athletics. However, improvement in results has been limited," Morningstar analyst David Swartz said.
The sportswear giant's fourth-quarter revenue fell 4% to $10.97 billion. It also projected a low-to-mid-single digit percentage drop in revenue in the first half of fiscal 2027.
CHINA WEAKNESS PERSISTS
Nike expects sales in China to remain under pressure as it works with retail partners to clear excess inventory, outgoing finance chief Matthew Friend said.
Greater China, which accounts for roughly 15% of Nike's annual revenue, is its third-largest market after North America and Europe, the Middle East and Africa.
Still, some analysts said there were early signs that Nike's efforts to reset the business in the region were gaining traction, as evidenced by a smaller decline in fourth-quarter sales compared with the company's earlier forecast of a roughly 20% drop.
Hill also said Nike plans to launch more than a dozen new footwear styles, though he cautioned that it would take time for the products to deliver sustained growth.
"Sportswear and Jordan Streetwear remain an overhang and will take time to recover, but the core business is stabilizing," Jefferies analysts said.
