From Fortune:



Nike announced that it is projecting only 1% in revenue growth for the fiscal year ending May 2024, down from its previous forecast of mid-single-digit percentage growth. This led to a drop in the company’s shares by almost 12% in after-hours trading. The decrease in sales is attributed to “macro headwinds” in China and Europe, as well as lower-than-expected sales in North America.

Despite reporting a 1% increase in total revenue, Nike’s sales fell short of expectations. The company is also facing competition from brands like Lululemon, especially in the Chinese market. In response, Nike plans to cut $2 billion in costs over the next three years through simplifying its product lineup and increasing automation.

While Nike is still a major player in the sports apparel industry, it faces challenges in a cautious consumer environment. The company hopes to address this by focusing on product innovation to attract consumers in a competitive and promotional market.

This article serves as a warning to investors about Nike’s lowered sales forecast and the challenges it faces in key markets like China and Europe, as well as the company’s plans to cut costs and focus on product innovation in response to these challenges.



Original: Nike shares plunge 12% after warning of China, EMEA ‘headwinds’