Nike CEO says its comeback plan is taking longer than expected, sending shares tumbling more than 8%

• Nike's Q3 2026 revenue stayed flat at $11.3 billion, and shares dropped over 8% after market close.
• Running led Nike's growth, highlighting the focus on performance wear.
• Nike's digital sales fell due to promotions, while sportswear faced revenue challenges.

Nike's "Win Now" turnaround plan isn't seeing immediate results.

The sports giant announced its third-quarter earnings results for fiscal year 2026 on Tuesday, and revenue remained flat at $11.3 billion. Nike shares moved lower after market close, falling more than 8% despite the company delivering better-than-expected results.

On the call, CEO Elliott Hill said the company's comeback is taking "longer than I would like," but he and other executives expressed confidence in the approach.

So far, running is leading the charge with growth. It was the first category to move into the "sport offense," which puts sports back at the center of its mission, as the company leans more into performance wear.

"The pace of progress is different across the portfolio, and the areas we prioritized first continue to drive momentum," Hill said in the earnings press release.

Meanwhile, other parts of the portfolio, including Greater China, Converse, and sportswear, are still in earlier stages of their comebacks, the company said. Nike's digital sales declined 9% in a drop that the company said is due in part to being too promotional with higher markdowns.

Sportswear continues to be a headwind to revenue growth for Nike as it declined by low double digits in the quarter. It's continuing its efforts to clean up inventory, which it said has taken several quarters to execute. The Nike sportswear and Jordan streetwear teams are moving from playing defense to playing offense, the company said.

"There is both an art and a science to seeding, igniting, and scaling new sportswear styles," Hill said.

In March 2025, Nike publicly rolled out its turnaround plan, which Hill calls its "Win Now" strategy. The effort has reoriented the company around sports from running to basketball, rather than gender or age.

CFO Matthew Friend said Nike expects revenues to be down low single-digits compared to the prior year, with gains in North America offset by declines in Greater China. Assuming no significant changes, after the first quarter of fiscal 2027, higher tariffs are expected to ease for Nike, Friend said on the call.

"Given the softness in sportswear, traffic patterns, and promotions across Europe, as well as recent disruption in the Middle East, we anticipate ending the fourth quarter with elevated inventory," Friend said.

The company expects to finish its "Win Now" actions by the end of 2026.