Nike's Sales Decline Increases Pressure to Improve Retail Relationships
Nike's Sales Decline Increases Pressure to Improve Retail Relationships, Nike has reported quarterly sales that fell short of expectations, heightening the urgency for the world's largest sportswear company to strengthen its relationships with retail partners and accelerate its product development.
Revenue dropped by 1.7% to $12.6 billion in the fiscal fourth quarter ending May 31, falling short of the average analyst estimates.
Nike shares
Nike shares fell by 2.4% at 4:17 p.m. in after-hours trading in New York, increasing the stock's year-to-date losses to 13% by Thursday's close.
The earnings results reveal continued weakness that Nike has reported in recent quarters. CEO John Donahoe is working to cut costs by $2 billion and reduce the workforce by 2%. Recent layoffs have affected the company's European headquarters near Amsterdam and its Converse brand based in Boston.
Amid a wave of competition from startups like On Holding and Hoka running shoes by Deckers Outdoor Corp, Donahoe stated that he will prioritize athletic shoes and new products, as well as wholesale partners who have received less attention from the company in its pursuit to bolster its stores and online platforms.
