Nike Targets $2 Billion USD in Cost Savings Following Weak Revenue Forecast

NIKE, Inc. shared its fiscal 2024 second quarter results on Thursday, leading to a more than 10% decline in its stock prices on Friday. Despite revenues rising 1% to $13.4 billion USD, the sportswear company’s second-half revenue outlook has been changed to expect lower results.

Now, Nike is targeting $2 million USD in cost savings over the next three years, which it aims to accomplish by simplifying its product assortment, increasing its automation and reducing its staff. The company estimates $400 million USD to $450 million USD in pre-tax restructuring charges, signaling that layoffs are coming.

“Our Q2 results demonstrated how we are getting back on our front foot in our key areas of innovation and growth,” said John Donahoe, President & CEO. “Today we are embracing a company-wide journey to invest in our areas of greatest potential, increase the pace of our innovation, and accelerate our agility and responsiveness.”

Source: hypebeast.com