A customer enters a Nike store along the Magnificent Mile shopping district in Chicago on Dec. 21, 2022.
Scott Olson | Getty Images
Nike on Thursday unveiled plans to cut costs by about $2 billion over the next three years as it lowered its sales outlook.
The stock fell about 10% after hours. Nike shares were up 4.7% so far this year through Thursday’s close, lagging far behind the S&P 500’s gains for the year. Retailer Foot Locker, which has leaned heavily on Nike products, fell about 7% after hours.
Nike now expects full-year reported revenue to grow approximately 1%, compared to a prior outlook of up mid-single digits. In the current quarter, which includes the second half of the holiday shopping season, Nike expects reported revenue to be slightly negative as it laps tough prior year comparisons, and sales to be up low single digits in the fourth quarter.
“Last quarter as I provided guidance, I highlighted a number of risks in our operating environment, including the effects of a…
2023-12-21 18:47:04
Original from www.cnbc.com