Elliott Hill said it would take time to rehab the iconic sneaker maker. Now he is warning of another setback in one of its most critical markets. When he took Nike's helm 18 months ago, Chief Executive Elliott Hill has been trying to stage a turnaround.

Nike shares tumbled more than 15% Wednesday after executives forecast lower revenue the day before, especially in China, where it warned sales could drop by as much as 20% this quarter. Long a key growth driver—and Nike's biggest market outside North America—China has become a thorn in its turnaround efforts as Nike faces fiercer local competition and cooling consumer demand.

"For me, my leadership team, from each and every one of us in this room, we have got to respond. I'm so tired, and I know you are, too, of talking about fixing this business," Hill said, according to a transcript of the Tuesday meeting reviewed by The Wall Street Journal. "I want to move to inspiring and driving growth and having fun."

Hill, a Nike veteran who came out of retirement to take the top job in October 2024, has previously called China "the longest road ahead" in the company's efforts to revive growth.

The athletic footwear and apparel company has now experienced sales declines in China for seven straight quarters, and the current one, ending May 31, could be even worse. Nike's finance chief, Matt Friend, predicted sales there would fall 20% in the current quarter and would continue to be a weak point throughout the next fiscal year.

Nike is facing stiffer competition from domestic upstart brands like Anta Sports Products, whose sales jumped 13% in 2025 to about $11.6 billion. Anta and rival brands like Li Ning offer similar athletic footwear at significantly lower prices—an advantage over premium foreign brands as China's economy slows. Their sprawling Chinese retail networks have also given them an edge in expanding market share.

Managing its inventory in China has been one issue for Nike. Friend said Tuesday the company was shipping fewer products to China so it wouldn't end up selling at a discount. Meanwhile, the company is trying to reduce the inventory that it already has there.

"It's going to be a healthier, more profitable business as we set that foundation for much more balanced growth as we go forward in China," Friend said.

And though sales of its running products are growing in China, its sportswear lines have taken a hit. More recently, the company has been experimenting with different product assortments and storytelling in some stores, and said it has seen improved traffic as a result.

The problems in China raise new doubts about the pace of Hill's turnaround strategy and reinforced investor concerns that it won't fully materialize soon.

Since returning to Nike, Hill has moved to mend relationships with retailers and doubled down on reframing Nike product teams around specific sports such as running and basketball. Before, Nike had lost considerable ground to rivals like On and Hoka while relying too heavily on its Air Jordan franchise and other classics.

"New management has now been in place for over 1.5 years and the 3Q results and guidance suggest Nike is not turning around for a new day in the sun," Laurent Vasilescu, an analyst at BNP Paribas wrote in an investor note.

Nike's comeback efforts are making more progress elsewhere. Its sales ticked up in North America as well as in Europe, Latin America and elsewhere, and overall, its quarterly sales of $11.3 billion beat Wall Street expectations. But fixing China becomes more paramount as a new conflict in the Middle East drives up shipping costs and could push consumer prices higher.

"This is complex work, and parts of it are taking longer than I'd like," Hill said of the turnaround.