- After Nike issued a deeply disappointing forward outlook, CEO Elliott Hill told staff in an internal all-hands: “I’m so tired, and I know you are too, of talking about fixing this business” — according to a recording reviewed by Bloomberg
- Nike shares fell as much as 15% Wednesday to their lowest intraday level since October 2014; shares are down roughly 45% since Hill took over in October 2024
- CFO Matthew Friend told employees the company’s “trajectory for the business was stepping down” and urged careful spending: “Our business is not moving in the right direction”
- Weakness in Greater China — expected to decline around 20% next quarter — and free-falling Converse sales remain the biggest structural headwinds alongside the Iran war’s disruption to European foot traffic
What Happened?
After Nike delivered a painful forward outlook projecting revenue declines for the remainder of 2026, CEO Elliott Hill gathered staff for an internal all-hands meeting. According to a recording reviewed by Bloomberg News, Hill told employees he was “so tired” of talking about fixing the business and wanted to move toward “inspiring and driving growth and having fun.” He acknowledged that parts of his turnaround strategy “took longer, way longer than I’d like” and conceded the investor call guidance had needed to be more direct: “You can’t just sit there and say everything’s great.” CFO Matthew Friend told staff the “trajectory for the business was stepping down” and urged careful cost management, acknowledging the tension that creates internally: “Our business is not moving in the right direction.” Nike shares fell as much as 15% on Wednesday, hitting their lowest intraday level since October 2014.
Why It Matters?
The internal candor from Hill and Friend confirms what markets had already begun pricing in: Nike’s turnaround is in genuine difficulty, not merely taking time. Hill’s admission that the strategy “took longer, way longer” is significant coming from a CEO specifically brought in to fix a company in decline after 18 months on the job. Nike shares are now down roughly 45% since Hill took over, confronting the board with a binary question: extend patience or escalate pressure. The financial picture is difficult across multiple fronts — Greater China is expected to fall approximately 20% next quarter amid economic slowdown and rising local competition, Converse is in freefall and drawing acquisition interest from Authentic Brands Group, and the Iran war is disrupting foot traffic across Europe and the Middle East. North America remains a relative bright spot, but it is insufficient to offset simultaneous weakness everywhere else.
What’s Next?
Hill is doubling down on Nike’s core sports identity — particularly basketball and running — to rebuild consumer relevance and claw back shelf space lost to Adidas, On Running, Hoka, and New Balance. The company plans to hold an investor day in the fall to provide longer-term guidance. Key watch items include the Converse situation, where a potential sale to Authentic Brands is reportedly under active discussion; the pace of any China recovery as economic conditions stabilize; and whether Hill’s cultural reset inside Nike translates into improved sell-through data in the second half of 2026. With shares at decade lows, the window for patience is narrowing — and for any investor still holding Nike, the fall investor day may be the last major catalyst before a more decisive board-level reckoning.
Source: Bloomberg
