Nike shares plunged Friday after the athletic apparel maker cut its revenue outlook for the fiscal year, with sneaker retailer Foot Locker also feeling the blow.

The stock was down more than 11% in premarket trading Friday. Foot Locker, which relies heavily on Nike products in its stores, was down over 7%.

Nike said in its earnings report Thursday that the company now expects its revenue to grow 1% for the fiscal year, down from the prior outlook of mid-single digit growth. The company also it was going to cut costs of upwards of $2 billion over the next three years.

The new outlook reflects increased headwinds "particularly in Greater China and EMEA," finance chief Matthew Friend said in the earnings call Thursday. He also noted digital traffic softness and a stronger U.S. dollar that has "negatively impacted second-half reported revenue versus 90 days ago."

"Nike needs improved marketing outside of basketball, streetwear and lifestyle trends," TD Cowen analysts said in a Friday note, downgrading the stock to "market perform" from "outperform." "Innovation at the higher end of its assortment is not resonating at scale while the Nike faces disruption from smaller competitors in footwear and apparel."

Goldman Sachs analysts stuck with their buy rating on Nike's stock.

But they also acknowledged that the company's report "provided ample fodder for bears, with slowing growth momentum as a result of a tougher macro pointing to a more promotional competitive marketplace, and the company now speaking more comprehensively to key franchise life cycle management which will weigh on sales momentum going forward."

–CNBC's Gabrielle Fonrouge and Michael Bloom contributed to this report.