‘Nike Cuts Revenue Outlook Amidst Consumer Spending Concerns\n\nNike, the world’s largest sportswear maker, has announced a decrease in its revenue outlook for the fiscal year ending in May. The company now expects only a 1% growth in revenue, down from its previous forecast of a mid-single-digit percentage increase. This change comes as Nike expresses concerns about consumer spending habits becoming more cautious.\n\nAccording to Chief Financial Officer Matt Friend, Nike has experienced soft demand outside of major shopping events such as back-to-school and Black Friday. This has led to the company’s decision to cut costs by $2 billion over the next three years. In response to this news, Nike’s stock fell more than 11% in after-hours trading on Thursday.\n\nThe company also announced a restructuring plan, which is expected to result in a pre-tax charge of $400 million to $450 million in the current quarter, primarily due to severance costs. This decision was made in light of the “bifurcation” in performance during the most recent quarter, with strong sales during major consumer holidays like Black Friday and Singles Day in China, but slower demand during other periods.\n\nNike remains a dominant player in the sportswear industry and continues to innovate and adapt to changing consumer behaviors. \n\nA Nike’s decision to cut its revenue outlook and implement cost-cutting measures reflects the company’s response to changing consumer spending habits.’
‘Nike Cuts Revenue Outlook Amidst Consumer Spending Concerns\n\nNike, the world’s largest sportswear maker, has announced a decrease in its revenue outlook for the fiscal year ending in May. The company now expects only a 1% growth in revenue, down from its previous forecast of a mid-single-digit percentage increase. This change comes as Nike expresses concerns about consumer spending habits becoming more cautious.\n\nAccording to Chief Financial Officer Matt Friend, Nike has experienced soft demand outside of major shopping events such as back-to-school and Black Friday. This has led to the company’s decision to cut costs by $2 billion over the next three years. In response to this news, Nike’s stock fell more than 11% in after-hours trading on Thursday.\n\nThe company also announced a restructuring plan, which is expected to result in a pre-tax charge of $400 million to $450 million in the current quarter, primarily due to severance costs. This decision was made in light of the “bifurcation” in performance during the most recent quarter, with strong sales during major consumer holidays like Black Friday and Singles Day in China, but slower demand during other periods.\n\nNike remains a dominant player in the sportswear industry and continues to innovate and adapt to changing consumer behaviors. \n\nA Nike’s decision to cut its revenue outlook and implement cost-cutting measures reflects the company’s response to changing consumer spending habits.’$NKE2023-12-22T12:20:14.000Z
