Nike’s (NKE) CEO Elliott Hill is determined to get the sportswear brand back to its glory days. But investors are losing patience as uncontrollable global factors get in the way of his plans.
The company took a prudent approach to its outlook during its latest earnings call, noting that the war in the Middle East and tariffs have created volatility for input costs. On a call with investors, Hill said the turnaround is proving challenging and that the external environment is partially to blame.
“We do have some external factors that we’re having to deal with while we’re in a major comeback, but that’s no excuse,” Hill said. “We’re controlling what we can control.”
Nike stock fell 14% on Wednesday to an 11-year intraday low as the company’s guidance showed slower progress in its comeback. In 2026, Nike expects revenue to decline by low single digits, with gains in North America offset by declines in Greater China. Earnings are expected to be flat.
The company called the tariff environment “uncertain,” but it said it expects the first quarter of fiscal 2027, beginning on June 1, to be the “final quarter where higher tariffs continue to be a material year-over-year headwind to gross margin” as the company laps the “Liberation Day” tariff policy shock of last year.
Once investors priced in those initial tariffs, the stock soared 30% between January and September of 2025 as the turnaround plan showed promise. At the time, Hill said that it was seeing momentum in its running, North America, and wholesale businesses, and that consumers were responding to the push.
But then investors’ patience began to wear thin as the strategy’s results stalled.
According to a Bloomberg report, Hill, who spent 32 years at the company before becoming CEO, has also grown tired of the turnaround and is ready to turn the page.
In a meeting with staff, Hill said, “I’m so tired, and I know you are too, of talking about fixing this business. … I want to move to inspiring and driving growth and having fun.”
Bank of America analyst Lorraine Hutchinson downgraded Nike stock to Neutral on Wednesday, noting that the expected Q1 growth from product innovation could be “offset by the risk that higher oil prices will push product costs higher.”
Guggenheim Securities senior managing director Simeon Siegel told Yahoo Finance that he believes Hill is focused on executing the turnaround, but there are “a lot of pieces.”
“It does feel a little bit like whack a mole … that’s why the stock is showing us what it’s showing,” Siegel said. He added that, without tariffs, there’s a possibility that Nike’s North America business could be growing sales and profits further.