Nike shares dropped 8 per cent to 32.22 dollars on Friday. The drop followed deeper projected sales declines through 2028 and another round of job cuts.

The stock now trades at its lowest level in 12 years. It is down more than 80 per cent from its 2021 peak of about 175 dollars. Earnings and market value have both halved since chief executive Elliott Hill came out of retirement in October 2024 to lead a corporate turnaround.

Management disclosed that financial benefits from its current restructuring program will not flow through until fiscal 2029 and 2030. That extended timeline forces the company to absorb lower revenue across wholesale partners and direct-to-consumer storefronts. Working through excess stock remains a hurdle.

Three core segments continue to drag on performance: classic sportswear, the Jordan brand, and the Greater China business. Together, these categories generate more than half of Nike’s total revenue. Any recovery depends on stabilizing demand in those lines.

For department store operators and multibrand sneaker retailers across Asia, the slow recovery alters floor plans. Retailers previously relied on high-margin Jordan releases and volume lifestyle sneakers. Many have reallocated shelf space to competitors that offer clearer product roadmaps and faster inventory turns.

Nike previously cut back wholesale allocations to chase higher digital margins, a decision that damaged long-term relationships with Asian distributors. Hill has worked to restore wholesale supply agreements over the past two years. Still, retail partners are no longer guaranteeing premium display real estate without stronger consumer pull.

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