Nike's shares sank in premarket trading after the company reported declining revenues and guidance that disappointed investors. The company also announced layoff plans for 2027, after cutting staff twice this year already.
Nike slumps after the retailer misses analysts' first-quarter earnings target and issues downbeat full-year guidance.
Expectations were low for sportswear giant Nike ahead of its fiscal first-quarter earnings report, but guidance issued late Thursday still managed to disappoint investors. It's the latest evidence that the plodding pace of the company's turnaround remains an obstacle for the stock.
Nike's comeback is becoming more painful than investors had hoped. Shares of the sportswear giant sank 8.5% in extended trading on Thursday after weaker-than-expected quarterly sales and a gloomier full-year outlook arrived alongside another restructuring plan that will eliminate jobs.
The weaker-than-expected forecast added to investor unease about the pace of CEO Elliott Hill's turnaround.
Nike said its sales are going to get worse this year. Investors aren't pleased.
The company has faced struggles in China and in its sneaker business.