Nike (NYSE:NKE) shares dropped approximately 6% in premarket trading on Wednesday, following the company’s unexpected decision to withdraw its annual revenue target.
This has left investors uncertain about the timeline for a potential turnaround under the company’s new CEO, Elliott Hill.
The sportswear giant postponed its much-anticipated investor day, originally scheduled for November 19, adding to the speculation.
CFO Matthew Friend explained that this move allows Hill "much-needed flexibility to evaluate Nike's strategies and business trends."
Hill, a veteran Nike executive, is set to take over on October 14, replacing John Donahoe.
Under Donahoe's leadership, Nike faced increasing competition from companies like On Holding and Hoka, which have gained market share in high-performance and innovative running shoes.
Investors had been hoping for insights during the now-postponed investor day to gain clarity on Nike’s turnaround strategy.
However, the delay has left analysts and investors with many unanswered questions.
In its recent financial update, Nike reported offering increased promotions to boost sales during the last quarter and hinted at a weaker holiday season ahead.
As investors anxiously await further updates, Nike's valuation—measured by its forward price-to-earnings ratio for the next 12 months—currently stands at 27.98, compared with 27.08 for Deckers and 35.14 for Adidas.