Nike, after years of dominance, is facing challenges in releasing new top-selling footwear to replace iconic models like Air Force 1 and Dunk sneakers. The company's shares plummeted after its full-year outlook fell short of expectations, with waning demand and competition from brands like On and Hoka and rival Adidas causing concern among investors. Nike's revenue is predicted to decline in the current fiscal year, contrasting with Adidas' successful growth due to a focus on retail partners and new product launches. CEO John Donahoe's efforts to prioritize Nike's own sales channels have not yielded expected profits, leading to layoffs and restructuring measures. The company's struggle to keep up with innovative competitors is eroding its market value and consumer interest, prompting analysts to anticipate further challenges and potential earnings downgrades in the near future.