Nike cut its sales outlook after pressure on consumers ramped up across the globe in recent months.

The sneaker and apparel company said strong trends in March, especially in North America, quickly fell off by mid-April, particularly in its sportswear and Jordan streetwear business. The pullback, which coincided with broader consumer jitters over the war in the Middle East and rising gas prices, have required more discounts and are also weighing on future orders for its products.

"Our consumer is under pressure around the world," Chief Financial Officer Matthew Friend said during a Tuesday call with analysts.

Nike now projects sales will decline by low- to mid-single digits for the period stretching from March through the end of November, compared with its prior forecast for a low-single-digit slide. It continues to expect earnings will be "flattish" over that period, Friend said.

"We are not expecting the environment to improve meaningfully over the next six months," Friend said, noting volatility stemming from evolving tariff policies, conflict in the Middle East and oil prices could drive up costs or weigh on consumers.

Considering the economic environment and recent sell-through trends, Nike now is taking steps to tighten its orders and manage inventory, which it expects to weigh on revenue but boost margins, Friend said.

The updated guidance came after Nike reported another drop in quarterly sales, adding to the challenges Chief Executive Elliott Hill faces in improving the company's performance. Nike shares were down about 4.1% in late trading, to $39.38.

Nike has been working through a turnaround plan under Hill, who rejoined the company in 2024. It has made progress in some areas--such as with its running, wholesale and North American businesses--but faced hurdles in China and with its Converse brand, in addition to the recent consumer weakness.

"We know we're not living up to our full potential," Hill said.

For the current fiscal first quarter, Nike expects revenue to be lower by low- to mid-single digits. Analysts polled by FactSet expect revenue of $11.5 billion, or down about 1.9% from a year ago.

Nike's fiscal fourth-quarter profit came in at $1.07 billion, or 72 cents a share, up from $211 million, or 14 cents a share, a year earlier. The recent quarter's per share figure includes a 52 cent boost related to the expected recovery of IEEPA tariffs.

Analysts polled by FactSet forecast earnings of 12 cents a share.

Fourth-quarter revenue ticked down 1%, to $10.97 billion, from $11.1 billion, compared with analyst estimates of $10.85 billion.

Wholesale revenue rose 4% while direct revenue fell 7%.

Sales rose 3% in North America and 1% in the Asia Pacific and Latin America market, though fell 1% in the Europe, Middle East and Africa region. The company had a particularly steep decline in China, where sales slid 12%.

The results come after Nike named a new chief financial officer last week. David Denton, currently financial chief at Pfizer, is set to take on the top finance role at Nike on Aug. 17, succeeding Friend.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

June 30, 2026 18:33 ET (22:33 GMT)

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