Reuters Nike on Thursday forecast a surprise drop in fiscal 2025 revenue, hurt by faltering demand for its sneakers as consumers covet newer brands such as On and Hoka, pushing its shares down over 12 after hours.

Nike said it expects a midsingledigit percentage fall in annual revenue. Analysts expected a 0.91 rise, according to LSEG data. Fourthquarter revenue also missed estimates.

The company39;s stock, which has declined 13 so far this year, was set to lose more than 15 billion in market value if the losses hold on Friday.

The Air Jordan maker39;s efforts to drive more sales through its directtoconsumer channel, mainly in North America, has been unsuccessful so far, as customers have become pickier about what they spend on. Rival brands On and Deckers39; Hoka have taken away some of Nike39;s market share with their more fashionable products.

Shares in these two companies also slipped between 1 and 2 in postmarket trading.

To stem a worsening decline in sales, Nike has cut back on oversupplied brands such as Air Force 1, poured money into making better running shoes more cushion under the midfoot to increase stability and is planning a fresh iteration of the popular Air Max line.

It is also betting that Olympics this year will help it win back some market share by spotlighting performance products such as the Alphafly 3 racer and the Pegasus running shoe.

Nike is trying to sell a narrative that it39;s reinventing, said GlobalData analyst Neil Saunders. But…