Nike plans job cuts as it forecasts lower sales
The sports giant suffered an especially big drop in Greater China, one of its worst-performing markets.
Nike announced plans to reduce a certain number of positions and construct a new facility in India as it strives to rebound from another weak quarter. The athletic apparel brand disclosed a slight decrease in quarterly earnings, owing to lower sales, while forecasting a drop in revenue for the upcoming fiscal year. CEO Elliot Hill emphasized Nike's long-term vision during a conference call, highlighting the company's growing partnership with women's basketball star.
Sales declined across all regions except North America, which saw a 2% increase, with significant reductions in Greater China (-22%) and other areas. Hill acknowledged the need for enhancements in sportswear and the Jordan brand, attributing the decline to an oversupply of underperforming products and a flawed direct sales strategy.
The CEO pledged to implement measures to make Nike more agile, efficient, and athlete-centric, which will lead to role reductions in the coming year. Nike's new campus in Bengaluru, India, will serve as a substantial investment in new talent and capabilities to better serve global athletes, particularly in India. Analysts expressed concern over Nike's fading brand appeal and its inability to compete effectively against more agile rivals, with shares dropping 7.1% in after-hours trading.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Nike plans job cuts as it forecasts lower sales freemalaysiatoday.com
- Nike plans job cuts as it forecasts lower sales bangkokpost.com
