Nike expects a sales decline in the "mid-teens" for the current quarter – significantly weaker than analysts expected. The forecast marks the next setback for the struggling US sportswear manufacturer, which continues to struggle to regain lost market share against Adidas, On, and Hoka. As a result, the stock fell by up to 9.3 percent on Friday to its lowest level in five years, before ending the trading day with a loss of 5.5 percent.

After a disappointing year, Nike recently initiated a strategy shift: The direct-to-consumer offensive, which had been pushed for years, was scaled back while management tried to counteract with investments in new products and marketing. However, the measures taken so far are not taking effect quickly enough. "We are not satisfied with our overall results. We can and will do better," explained CEO Elliott Hill, who returned from retirement in October to take the helm.

The company had surprised with solid figures in the previous quarter: Revenue rose to $11.3 billion, net profit was $794 million – both exceeded expectations. However, the positive development could not overshadow the gloomy forecast. For the current quarter, CFO Matthew Friend expects a decline in gross margin by four to five percentage points compared to the 41.5 percent of the previous quarter.

In particular, geopolitical risks, new tariff measures, volatile exchange rates, and changes in tax regulation are affecting the corporation. At the same time, the demand for classics like the Jordan series is weakening, while Chinese consumers are also acting cautiously. The former lifestyle boom in sneakers seems to be turning against Nike – in favor of more agile competitors with a clear premium focus.

The consequence: The brand is continuously losing ground in a fundamentally growing market for sports shoes and casual clothing. Analysts like UBS warn that the profit outlook could continue to cloud. "So far, we see no sufficient progress in the product portfolio or marketing to credibly ensure a turnaround," according to a recent assessment.

The market reacts accordingly with skepticism: With a market capitalization below the 100-billion-dollar mark, Nike is now at its lowest level since spring 2019. A return to stable growth is likely to require more time and additional capital.