Nike shares drop as retailer posts disappointing sales, announces layoffs as part of restructuring
Nike is expected to post another quarter of declining sales as the company tries to turn around its business and regain growth in China.
TL;DR
- Nike's fiscal first-quarter earnings per share were 48 cents, surpassing the 43 cents expected.
- Revenue for the quarter was $11.21 billion, slightly below the $11.32 billion expected.
- Revenue declined 4% year-over-year, with a significant 26% drop in the China market.
- The company announced a restructuring plan called Pace, targeting $2.5 billion in savings and involving layoffs starting in 2027.
- Nike expects fiscal 2027 revenues to decline by a high-single digit percentage and adjusted earnings per share between $1.15 to $1.35.
- Shares fell approximately 3% in extended trading following the announcement.