Nike's shares plummeted by up to 20% after the company projected a significant revenue drop for fiscal 2025, raising concerns about waning demand and competition from brands like On and Hoka. The company expects a 10% decline in first-quarter revenue, driven by weak sales in China and a drop in direct-to-consumer sales, which fell 8% year-over-year. Analysts have lowered their price targets for Nike, citing the need for new product innovations and stronger management. Nike's strategy to move away from wholesalers to direct sales has hurt its market share, prompting a return to wholesale partnerships. Despite the challenges, the company remains confident in its long-term growth strategy, with upcoming product launches aimed at boosting demand. The broader athletic apparel market also saw declines, with companies like Skechers, Lululemon, and Puma experiencing stock drops.