Sportartikel-Konzern: Nike verschärft Sparprogramm

Nike, the Adidas rival, is tightening its cost-cutting measures to overcome a partially self-inflicted crisis. The sports apparel conglomerate announced plans for $2.5 billion in savings over the coming years, following the release of its quarterly earnings. These measures may include layoffs, according to Nike CEO Elliott Hill during a conference call with analysts.

Revenue fell by 4% year-over-year to $11.2 billion in the most recent quarter, with net income down 2% to $712 million. Consumer hesitancy in spending was cited by Hill. Nike expects a double-digit sales decline in the fiscal year that ends by May 2027. The stock fell by nearly 4% in after-hours trading on the US market. For years, the company relied heavily on direct-to-consumer sales, especially in the US market, where competing brands took shelf space away from Nike, hurting sales.

The company is now seeking a better relationship with its retail partners. Nike CEO Hill ordered the Adidas competitor to focus more on athletes, after the lifestyle share of the product mix increased over the past years.