Nike shares fell nearly 10% in pre-market trading after a weak quarter and below-estimate full-year guidance raised concerns across the sportswear industry. Shares of rivals Lululemon, On, Under Armour and Deckers Outdoor, which makes Hoka, also declined on Friday. Nike CEO Elliott Hill said Nike Sportswear revenue, representing just under half of quarterly sales, dropped in the low double digits as the company cut Dunk revenue by nearly 50%, creating an approximately $200 million headwind. Underperforming older, high-volume footwear and broader marketplace pressure also weighed on results, while Nike worked with wholesale partners to reduce excess inventory. Nike Brand sales fell 4%, online sales dropped 13%, Converse sales declined 28% and China sales fell 26%. The company also indicated that another major round of layoffs was forthcoming. Nike shares had already fallen 76% over the previous five years, and Stifel analyst Peter McGoldrick said the stock had not yet reached a bottom while trading at 28 times the midpoint of FY27E guidance.