Nike shares slumped 10% in extended trading afte
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Posted On: 12/26/2023 9:33:59 AM
Nike
shares slumped 10% in extended trading after the retailer said it plans to cut $2 billion in costs over the next three years. The sneaker giant also cut its revenue outlook for the fiscal year, expecting it to grow approximately 1%, when it had previously expected growth in the mid-single digits. Nike said it’s hoping to cut costs by simplifying its product assortment, increasing automation, reducing management layers and leveraging its scale “to drive greater efficiency.” The plan will cost the company between $400 million and $450 million in pretax restructuring charges that are mostly related to employee severance costs, Nike said.
shares slumped 10% in extended trading after the retailer said it plans to cut $2 billion in costs over the next three years. The sneaker giant also cut its revenue outlook for the fiscal year, expecting it to grow approximately 1%, when it had previously expected growth in the mid-single digits. Nike said it’s hoping to cut costs by simplifying its product assortment, increasing automation, reducing management layers and leveraging its scale “to drive greater efficiency.” The plan will cost the company between $400 million and $450 million in pretax restructuring charges that are mostly related to employee severance costs, Nike said.
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