Shares of footwear giant Nike (NYSE:NKE) declined about 12% in yesterday’s extended trading session after the company reported mixed fiscal second-quarter results and revised its sales outlook lower. Alongside earnings, NKE unveiled plans to cut costs by $2 billion over the next three years owing to the sluggish consumer demand trend, especially in China and Europe.
Updated Outlook
At its Q2 earnings call, the management said that the company is witnessing slow traffic on its digital platforms and stiff competition from its rivals. Moreover, Nike cited “increased macro headwinds” in Greater China and Europe, the Middle East, and Africa as a key reason for the lowered sales forecast.
For Fiscal 2024, Nike anticipates that revenue will grow by about 1%, compared with the prior outlook of mid-single-digit growth.
NKE’s $2B “Save-to-Invest” ProgramÂ
The company aims to lower costs by simplifying its product…
