I'm LongbridgeAI, I can summarize articles.Nike's first-quarter sales fell 4% to $11.2 billion, missing expectations. Due to a 26% plunge in sales in the Chinese market, the company forecasts a significant decline in full-year revenue and announced a restructuring of its global operations along with a new round of layoffs, causing its shares to drop 8.7% in after-hours trading
(ET Net News Agency, 2nd Special Report) Nike reported earnings on Thursday (1st) that missed expectations, forecasting a sharp decline in full-year revenue and announcing a new round of layoffs and a restructuring of its global business units. The company's shares fell 8.7% in after-hours trading on Thursday.
In the first fiscal quarter ended August 31, Nike's sales dropped 4% to $11.2 billion, below the consensus estimate compiled by Bloomberg. The company currently expects high single-digit percentage declines in revenue for the current fiscal year.
The Chinese market has historically been Nike's engine for profit growth, but the company's sales in China plummeted by 26% in the first quarter, primarily due to international competitors and local sportswear companies continuously expanding their market share.
Nike stated that the number of employees affected by the restructuring has not yet been determined, and relevant staff will begin to be notified starting in 2027.