Nike shares plunge after retailer says quarterly sales will fall 10%, warns on China weakness

Shares of Nike plunged on Thursday after the retailer cut its full-year guidance and said it expects sales to drop 10% during its current quarter as it warned of soft sales in China and "uneven" consumer trends across the globe.

The expected 10% first-quarter slump is far below the 3.2% drop that analysts had expected, according to LSEG.

The sneaker giant now expects fiscal 2025 sales to be down mid-single digits, compared to analyst estimates of a 0.9% increase. Nike previously expected sales to grow. The company also expects sales in the first half to be down in the high single digits, compared to previous guidance of declines in the low single digits.

"A comeback at this scale takes time," the retailer's finance chief Matthew Friend said on a call with analysts. "Although the next few quarters will be challenging, we are confident that we are repositioning Nike to be more competitive with a more balanced portfolio to drive sustainable, profitable, long-term growth."

The company cut its guidance as it contends with slower online sales, planned declines in classic footwear franchises, "increased macro uncertainty" in the Greater China region and "uneven consumer trends" across Nike's markets, Friend said. It also expects sales into wholesalers to be slower as it scales new innovations and pulls back on classic franchises.

Shares plunged roughly 11% in extended trading.

For the fiscal fourth quarter, the company handily beat earnings estimates as its cost-cutting efforts continue to bear fruit, but Nike fell short on revenue.

Here's how Nike did during the period compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

The company's reported net income for the three-month period that ended May 31