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Nike shares experienced a significant decline on Friday following the company’s decision to lower its revenue outlook for the fiscal year. This also had an impact on sneaker retailer Foot Locker.
On that day, Nike’s stock closed down by more than 11%, while Foot Locker, which heavily relies on Nike products, closed down nearly 4%.
This marked Nike’s worst performance since September 30, 2022, when it experienced a 12.8% drop.
In its earnings report released on Thursday, Nike stated that it now expects its revenue to grow by only 1% for the fiscal year, a decrease from the previous mid-single-digit growth projection. Additionally, the company announced plans to cut costs by over $2 billion within the next three years.
During the earnings call, Nike’s finance chief, Matthew Friend, attributed the revised outlook to increased challenges, particularly in Greater China and EMEA. He also mentioned softness in digital traffic and the negative impact of a stronger U.S. dollar on second-half reported revenue compared to 90 days ago.
“Nike needs to improve its marketing efforts beyond basketball, streetwear, and lifestyle…
2023-12-22 16:17:33
Link from www.cnbc.com
