Nike Revenue Forecast Drops

Nike shares plunge following a dismal revenue forecast and major cost-cutting layoff plans.

Nike shares fell 6.7% after the company announced a dismal revenue forecast and plans to implement a new operating model called "Pace" designed to cut costs. The move comes as Nike's stock has dropped more than 48% so far this year. The company reported a 4% drop in Q1 revenues to $11.2 billion, largely due to declines in Greater China and challenges in its Sportswear and Jordan brands. Nike's net income was $712 million, down 2% from $727 million the previous year, and it expects revenue to fall by high-single digits in fiscal year 2027. The new Pace plan is expected to deliver $2.5 billion in cost savings by 2031. Nike has already cut 775 jobs at a US distribution center and another 1,400 roles from the tech division in April.

Topics