Nike shares plummet 10% after weak revenue outlook and layoff plans underway - CNBC
Nike shares fell 10% following a weak revenue outlook and the announcement of a long-term cost-cutting program called 'Pace'. The company plans to implement further layoffs starting in 2027 to streamline operations and reduce expenses.
Why it matters
The significant drop in stock value and planned workforce reductions signal ongoing struggles for the retail giant to maintain growth in key markets like China.
Nike shares dropped Friday, falling for a second straight day after the company reported declining revenue and plans to lay off staff in 2027.
The sportswear giant said Thursday that its fiscal first-quarter revenues were down 4% to $11.2 billion, citing declines in Greater China, which was partially offset by growth in its North America segment. Its net income was $712 million, down 2% from $727 million the previous year.
"We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we're taking deliberate actions to strengthen those businesses the right way for the long term," Nike President and CEO Elliott Hill said in the release.
Nike expects revenues to decline in the high-single digits in 2027. Its shares were last down about 6% in morning trading on Friday and have declined nearly 45% since the beginning of the year.
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