Nike shares tumbled 13% after executives predicted sales would drop by as much as 20% in China during the current quarter. The iconic sneaker maker now faces its seventh consecutive quarter of declining sales in its second-largest market, raising concerns about the effectiveness of its turnaround strategy.

China has transformed from a key growth driver into a persistent obstacle for Nike's revival efforts. The company contends with fiercer local competition and cooling consumer demand in the market. Finance chief Matt Friend indicated China will remain a weak point throughout the next fiscal year.

Chief Executive Elliott Hill, who took charge 18 months ago, called China "the longest road ahead" in Nike's efforts to revive growth. While serving 1.4 billion potential athletes remains a powerful opportunity, the latest setbacks suggest Nike's recovery in this crucial market faces more challenges than anticipated.