Nike shares slide as revenue outlook weakens and $2.5 billion cost-cutting plan points to more layoffs
AI Market Summary
Nike flagged a sharp revenue decline for the year, reported a 4% y/y quarterly sales drop to $11.2B, and outlined a $2.5B cost-savings plan through 2031 that includes additional layoffs starting in 2027. Weakness in Greater China is offsetting North America growth, while guidance missed expectations and reinforces a margin-defense narrative. The update pressures Nike-specific risk appetite and can weigh on discretionary sentiment.
Impact level
● Medium
Affected assets
NCSKNKE2USD/USDT+0.41%
AI Insight · NCSKNKE2USD/USDTAI Insight
▼ Bearish
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Nike reported fiscal first-quarter revenue of $11.2 billion, down 4% year over year, as weakness in Greater China outweighed growth in North America. Net income fell to $712 million. The company said its new operating model is designed to deliver $2.5 billion in cost savings by 2031 and will include additional layoffs starting in calendar 2027. Citi kept a “neutral” rating, citing sales guidance below market expectations, as the stock is down nearly 45% since the beginning of the year.
