Nike Shares Fall as Upstarts Gain Market Share

Nike says it expects a surprise 10 per cent drop in quarterly revenue, as it faces growing competition from newer rivals such as On and Hoka.

The news sent Nike shares plunging more than 12 per cent in after hours trading, which could mean a loss of US $15 billion in market value if the losses hold on Friday.

The world’s largest sportswear company also told investors it is facing weakening demand in international markets, including in China.

But Nike is optimistic that new products and a marketing campaign at the upcoming Olympic Games in Paris will help the company regain momentum with consumers.

Nike CEO John Donahoe says the Paris Olympics offers a pinnacle moment to communicate its vision of sport to the world.

The company also lowered its outlook for the 2025 fiscal year.

It said direct-to-consumer business declined 8 per cent, as some customers went for more trendy upstart brands.