Top companies in the consumer goods sector have consecutively released disappointing earnings reports, indicating that the industry's winter is still ongoing, and consumers do not seem to have changed their mindset despite the slowdown in inflation.After the market closed on Thursday Eastern Time, Nike, the world's largest sportswear giant, announced its second-quarter performance (for the quarter from September to November). The earnings report showed that Nike's diluted earnings per share for the quarter were $1.03, higher than analysts' expectations of $0.85. However, revenue only increased by 1% to $13.39 billion, falling short of analysts' expectations of $13.46 billion. This is the second consecutive quarter that Nike's revenue has fallen short of expectations.At the same time, the company also lowered its sales outlook for the second half of the fiscal year, with revenue growth expected to be only 1%, lower than the previously estimated mid-single-digit percentage increase (about 4-6%), and also lower than analysts' estimated growth of 3.8%.Nike also announced a restructuring plan, which includes reducing product offerings, streamlining management, implementing more automation technology, and improving the supply chain, with a goal of cutting $2 billion in costs over the next three years.After the release of the earnings report, as of the time of writing, Nike's stock plummeted by 11.53% after hours. Foot Locker, a retailer that relies on Nike products, also fell by about 7% after hours.As of Thursday's close, Nike's stock price has risen 4.7% year-to-date, far behind the market's 24% increase and Adidas' 52% increase.<h2>Nike CFO: Global consumer behavior is becoming increasingly cautious</h2>In the earnings report, Nike also stated that revenue for the third quarter, which includes the peak shopping season at the end of the year, may slightly decline compared to the same period last year, while the fourth quarter is expected to see moderate single-digit percentage growth.Nike CFO Matthew Friend said during a conference call that the latest guidance reflects the challenges of the overall environment, especially in Greater China and Europe, Middle East, and Africa (EMEA):<blockquote>&#34;There are signs of increasing caution in consumer behavior around the world.&#34;</blockquote>In terms of regional performance, Nike's sales in Greater China for this quarter were $1.86 billion, lower than analysts' expectations of $1.95 billion. Revenue in the EMEA region also fell short of market expectations, but revenue in North America, Asia Pacific, and Latin America exceeded market expectations.However, despite falling short of revenue expectations, Nike's profit performance exceeded analysts' expectations.In the past six quarters, Nike's gross margin has declined compared to the same period last year, but the situation improved this quarter. The gross margin for the quarter increased by 1.7 percentage points to 44.6%, slightly higher than the market's expectation of 44%.The company attributed the increase in gross margin to &#34;strategic pricing actions and lower ocean freight rates.&#34;In addition, Nike's inventory for the quarter also decreased by 14%, a significant improvement compared to the same period last year, indicating the significant impact of the clearance strategy.Thanks to the stable brand appeal and product strength, in an environment where consumers are pursuing discounts, the average selling price of Nike's footwear and apparel has slightly increased, and the average selling price across channels has also grown, with particularly prominent elasticity for high-priced products.The company expects that by the end of this fiscal year, the gross profit margin will expand by 1.4 to 1.6 percentage points. Excluding restructuring costs, it is expected that the full-year profit will reach the target.Nike is seeking to simplify its product range, increase automation and technology utilization, streamline the overall organization by reducing management levels, cut costs, and use its scale to &#34;drive higher efficiency&#34;.Nike plans to reinvest the funds saved from these measures into future growth, accelerate innovation, and drive long-term profitability.Nike CFO Friend said:<blockquote>&#34;Looking ahead to the weak revenue outlook for the second half of the year, we will continue to focus on strong gross margin execution and strict cost management.&#34;</blockquote>David Swartz, a senior stock analyst at Morningstar, pointed out that Nike is about to reduce the number of products, possibly because it believes that too many products under its umbrella are not high-profit products and cannot generate substantial revenue.As early as the beginning of this month, it was reported that Nike had quietly laid off employees for some time, affecting departments including recruitment, procurement, branding, engineering, human resources, and innovation.Nike will recognize pre-tax restructuring expenses of $400-450 million, mainly occurring in the third quarter. Nike stated that these expenses are mainly related to employee severance costs.The consumer sector as a whole is in a slump.Nike is one of the last retailers to announce its financial report for the December holiday season. Investors generally hoped to hear good news about holiday season expectations, but Nike's low expectations for holiday season sales disappointed the market.However, this year, performance expectations for sports equipment retailers such as Foot Locker and Dick's Sporting Goods have been conservative, and Nike itself faces challenges from competitors such as Adidas and On Running.Earlier, FedEx, which is regarded as a &#34;barometer of the U.S. economy,&#34; announced that its first-quarter profit was far below analysts' expectations, and it also lowered its full-year revenue forecast, expecting consumer spending to remain weak during the upcoming holiday season (Thanksgiving to Christmas and New Year).Market analysis points out that the holiday shipping season from late November to the end of the year (Thanksgiving to Christmas and New Year) is usually the busiest and highest-revenue season for delivery companies, with parcel volumes doubling.However, this year, consumers are facing issues such as inflation and rising living costs. For example, the cost of housing, food, and other necessities has increased, which may limit their shopping habits and affect the demand for holiday season deliveries.In addition, General Mills, the snack giant, announced that its second-quarter sales and adjusted earnings per share were also below expectations, and its cumulative net profit for the first half of the year decreased by 10.41% compared to the same period last year. All these signs indicate that consumers are reducing their spending due to rising living costs.

Global consumer behavior is cautious, Nike's revenue is lower than market expectations, and it announced a large-scale layoff and product line contraction.

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Another consumer giant "explodes"! Nike announced a downward revision of its profit guidance and a large-scale layoff, causing its stock price to plummet. | Earnings Report