- Nike’s stock fell to a 13-year low as revenue slipped 4% and the company forecast a high-single-digit sales decline for the full fiscal year.
- Greater China revenue dropped 26% in currency-neutral terms, and Converse sales collapsed 28% as the company announced layoffs and a restructuring program.
- Nike’s RTFKT NFT collection is reportedly losing its images, adding to broader brand challenges.
Nike told investors on Thursday to expect layoffs, weaker profitability, and fewer Jordan launches, as its stock crashed to a 13-year low. The sporting apparel titan closed Thursday’s regular trading session at a market capitalization of $53 billion, down from $264 billion at its November 2021 peak, and immediately crashed another 9% in after-hours trading.
Revenue for the most recent fiscal quarter slipped 4% to $11.2 billion, shy of the $11.3 billion consensus. Profit of 48 cents a share beat estimates, but Nike forecast adjusted earnings of $1.15-1.35 per share, far below the $1.68 analysts projected.
The greater China area, once Nike’s growth engine, fell 26% in currency-neutral terms. Nike’s Converse division collapsed 28% to $263 million, shrinking in every region, while Nike’s own digital sales fell 13%.
Revenue from its Jordan brand, 13% of the company last quarter, fell by a similar amount. CEO Elliott Hill said the company has been oversupplying retro products and plans to pitch fewer, rarer launches.
Nike executives unveiled Pace, a layoff and restructuring program that Nike says will save a cumulative $2.5 billion by 2031. Layoffs begin in 2027, following previous cuts of 775 distribution center jobs and about 1,400 tech roles.
The stock now trades at September 2013 prices, and the S&P Dow Jones index committee removed Nike from its S&P 100 this month. Nike’s RTFKT NFT collection is losing its images, according to a separate report.
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