This photo provided by Nike shows an aerial view of its world headquarters in Beaverton in 2021.

Nike shares on Friday tumbled nearly 20% after the company said it expected sales to decline in its new fiscal year, the latest sign of severe turbulence at Oregon’s biggest company.

It was the biggest one-day drop in Nike history, wiping out roughly $28 billion in shareholder wealth.

Even before Friday’s tumble, Nike’s stock had been heading steadily downward after climbing above $170 in November 2021. Shares closed Friday at $75.36.

Under CEO John Donahoe, who started work in 2020, the sportswear giant bet heavily on direct sales and the popularity of Nike classics, like Air Jordans, Dunks and Air Force 1s. The move away from wholesale opened shelf space for competitors, including Hoka and On, who have gained momentum.

Thursday night, the company said demand for “lifestyle” sneakers, like Dunks, is slowing more than previously expected.

“We were surprised at what we saw on these larger franchises as we were navigating through the … quarter,” Chief Financial Officer Matt Friend said on a call with stock analysts.