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Nike warned investors Thursday that sales could decline as it sells fewer classic shoes and focuses on innovating new products.
The company expects sales to decline in the low single digits for the first half of its fiscal year, which begins in June, the company said. Reuters. Nike Chief Financial Officer Matthew Friend told investors on Thursday’s post-earnings conference call that the company will reduce production of staples like the Air Force 1 and Pegasus running shoes in favor of new products. That’s what he said.
“We know that Nike is not living up to our potential,” CEO John Donahoe said on a conference call, according to the newspaper. bloomberg. “It’s clear that some important adjustments need to be made.”
Nike shoes at a Macy’s store on March 21, 2024 in San Francisco, California. (Photo by Justin Sullivan/Getty Images)
Donahoe told investors that new running shoes will be released this year, including a shoe targeted at “everyday runners” with Nike Air Cushion support.
Related: Casual runners are running away from Nike and towards competitors – here’s why
return During December, Mr. Donahoe told investors about a $2 billion savings plan to reduce costs over the next three years. In February, the company said The plan includes cutting its 83,700 global workforce by 2%, the company said.
According to Nike, Nike is the world’s largest sportswear retailer. Statistaoutpacing competitors such as Adidas and Puma in footwear revenue. at least $15 billion According to , footwear makes up the majority of Nike’s profits at 68%. same source.
The retail giant has recently faced challenges due to changing consumer demands for the look and feel of shoes, as well as industry competitors such as Hoka and On. Reuters report.
Related: ‘A round from hell’: Tiger Woods ends 27-year partnership with Nike