Economic Information Daily (special correspondents, 2nd) Nike Inc. (US.NKE) reported on Thursday (1st) worse-than-expected earnings, forecasting a significant decline in annual revenue, and announced a new round of layoffs and a restructuring of its global business units. The company's stock price fell 8.7% in after-hours trading on Thursday.
For the first fiscal quarter ended August 31, Nike's sales dropped 4% to $11.2 billion, below the consensus estimate compiled by Bloomberg. The company now expects revenue for the current fiscal year to decline by a high single-digit percentage.
The Chinese market has historically been Nike's profit growth engine, but the company's sales in China plummeted 26% in the first quarter, primarily due to international competitors and local sportswear companies expanding their market share.
Nike said the number of employees affected by the restructuring has not yet been determined, and affected employees will be notified starting in 2027. (yc)
For the first fiscal quarter ended August 31, Nike's sales dropped 4% to $11.2 billion, below the consensus estimate compiled by Bloomberg. The company now expects revenue for the current fiscal year to decline by a high single-digit percentage.
The Chinese market has historically been Nike's profit growth engine, but the company's sales in China plummeted 26% in the first quarter, primarily due to international competitors and local sportswear companies expanding their market share.
Nike said the number of employees affected by the restructuring has not yet been determined, and affected employees will be notified starting in 2027. (yc)
