Nike shares fell almost 8% in pre-market trading on Friday after the US sportswear giant missed sales forecasts and announced job cuts.
Revenue for the first quarter of its financial year fell 4% to $11.21 billion, short of the $11.33 billion analysts had expected.
Earnings per share slipped to $0.48 from $0.49 a year earlier.
Nike expects revenue to fall by a high single-digit percentage over the full financial year.
Gross margin was a rare bright spot, rising 0.6 percentage points to 42.8%.
Fewer roles
The company also unveiled a cost-cutting programme designed to make it run more efficiently.
Chief executive Elliott Hill told staff the changes "will result in fewer roles across Nike".
Decisions on affected jobs will start in 2027.
The figures land almost two years after Hill took charge.
Zach Warring at CFRA, which rates the stock a Buy, said the quarter looked like one from a new chief executive three or four quarters into the job.
He argued that, with expectations reset, Nike can now focus on returning to growth and fixing weak spots in China and Europe.
JD Sports unmoved
JD Sports Fashion, the FTSE 100 sportswear retailer and a key Nike stockist, was little changed in London.
Shore Capital said the update points to a still-tough athleisure market, with footwear, JD's largest category, continuing to struggle.
North American sales rose 2%, but that was driven mainly by clothing, up 6%, while footwear grew only 1%.
Sales fell in China, Europe, Latin America and Asia Pacific.
Nike's sales through wholesale partners such as JD dipped just 1%, against an 8% fall in its direct sales.
But analysts David Hughes and Clive Black noted that Nike is adding wholesale partners, so it is unclear how much JD will gain.
Without solid growth in Nike footwear, they do not expect any tailwind for the retailer.
Shore Capital rates JD a 'hold' with a 75p target, 7% below its current 81p.
The broker said the shares look cheap at 7.6 times earnings but expects another year of falling profits.
JD updates on third-quarter trading on 19 November.
