From Dow Jones & Company:



Nike Inc. plans to save $2 billion over the next three years to streamline the company due to a softer revenue outlook. The savings will come from simplifying product selection, using more automation and technology, and laying off workers. Nike reported increased net income and revenue in its fiscal second quarter, but shares fell 5.3% in after-hours trading. This comes as Nike faces competition from other athletic-gear retailers and tries to navigate through weaker demand and a price-cutting battle in retail stores amid inflationary conditions. The company is cautiously planning for modest markdown improvements for the balance of the year. Analysts believe that Nike has opportunities to accelerate revenue growth in 2024, but also note that the brand has been more aggressive on cutting prices and that recent sell-through trends for the Jordan brand have been choppy. It’s uncertain whether Nike will raise its full-year sales guidance, and there are concerns about whether a simple reiteration of guidance will be enough following the stock’s recent strong performance.



Original: Nike eyes $2 billion in cost cuts in effort to ‘streamline’ amid softer outlook