The company has faced struggles in China and in its sneaker business

Nike's stock has been one of the weakest in the S&P 500 this year.

Nike investors will need to wait longer for a turnaround to take hold as the company projects more sales declines ahead.

The company (NKE) on Thursday said it expects sales to fall by the "high-single digits" in its fiscal 2027, which runs through May, as it tries to fix its sportswear segment and its Jordan brand, and as it copes with ongoing struggles in China.

CEO Elliott Hill said in a statement that the company is "taking deliberate actions to strengthen those businesses the right way for the long term." The company announced a new program intended to save $2.5 billion through fiscal 2031.

For Nike's first quarter, sales fell 4% from a year before to $11.21 billion. The company earned 48 cents a share, compared with 49 cents in the same period a year prior.

Analysts polled by FactSet expected sales of $11.32 billion for the quarter, which ran through August. They also anticipated adjusted earnings per share of 44 cents.

Nike forecast full-year adjusted earnings per share of $1.15 to $1.35. Analysts expected $1.68.

The forecast excluded around 15 cents of restructuring costs related to the savings program, called Pace. That program, Nike said, includes around $1 billion of pre-tax charges, "primarily consisting of employee-related costs," as well as roughly $300 million in severance costs recognized in the last fiscal year.

Investor skepticism persists. Shares fell 4.5% after hours on Thursday.

The results follow a roughly 45% drop in Nike's stock so far this year, reflecting doubts about the company's turnaround plans under Hill's leadership. Nike's stock has been among the S&P 500's SPX biggest laggards this year.

Nike has been trying to sell off casual throwback sneakers, like Dunks and Air Force 1s, that have fallen out of style. Its streetwear business has suffered as the company faces steeper competition. Nike's business in China has also struggled.

The company has tried to attack those problems by focusing more directly on athletes, trying to make itself more locally relevant in China and rolling out newer products. But there are signs that not all of those products are catching on.

Following Dick's Sporting Goods' $(DKS)$ massive stock selloff in August, some analysts attributed the retailer's difficulties to its Foot Locker chain, and chalked up Foot Locker's difficulties to Nike. The company noted that "legacy" sneakers were sitting around unsold for longer.

"Foot Locker is more dependent on launch and retro product," Ed Stack, Dick's executive chairman, said then. "Not only were there fewer launches in the second quarter, but launches we did see performed below industry and our expectations."

-Bill Peters