Nike shares dropped more than 12% on Friday after the company released a lackluster earnings outlook, causing investors to fret over the company’s future prospects.

The company reported earnings of $0.78 per share, which was in line with analysts’ expectations, but offered a muted view for the full year, expecting revenues to grow by low single digits, and for earnings per share to decline by 5% to 10%.

Nike has been facing increasing competition from rival brands, particularly in the key U.S. market, and has been struggling to keep up with the rapid rise of the athletic footwear and apparel market.

The company’s shares have been on a downward slide for the past year, and Friday’s drop was the latest in a series of setbacks for the company, which has seen its market value shrink by more than $20 billion since the start of 2022.

Nike has been trying to turn things around by investing in new products and technologies, and has been working to expand its market presence in key regions like China and India.

But investors remain skeptical about the company’s prospects, and have been selling off the stock in recent months, with the shares down more than 25% since the start of the year.

“We believe the brand is in need of an invigorating spark to reinvigorate growth,” said an analyst at CFRA Research.

Nike has been facing headwinds in recent years, with its market share shrinking as competitors like Adidas and Puma have been gaining ground.

The company has also been dealing with supply chain issues, like many other retailers, which have been exacerbating its problems.

Nike said it expects to see some improvement in the second half of the year, but warned that the impact of COVID-19 lockdowns in China could continue to hurt its business in the coming months.

The company’s outlook is a stark contrast to the optimism that was evident at the start of the year, when Nike was forecasting revenue growth of at least 5% and expected earnings per share to rise by low double digits.

For now, investors will be watching to see if the company can turn its fortunes around, and whether its strategy of investing in new markets will pay off.

The company’s decline in share price has already wiped out billions of dollars in market value, and it remains to be seen if the company can stem the losses and reclaim its position in the market.