Nike Shares Fall After Revenue Drop and More Job Cuts
Nike shares fell about 4% in after-hours trading on October 1. The company reported first-quarter revenue for fiscal 2027 was down 4%.
Nike also announced more job cuts. It also announced an overhaul of its operating model.
Nike forecast a sharp decline in full-year revenue. The changes came under CEO Elliott Hill.
This was separate from an earlier drop in Nike shares. Back then Nike reported sales that CNBC called disappointing.
Nike also announced layoffs as part of a restructuring. Nike then expected sales to fall further.
That included another quarter of declining sales. Nike has faced struggles in China and in its sneaker business.
The company was trying to turn around its business. It also wanted to regain growth in China.
Klear Note — A company restructuring changes how it works, often including job cuts.
Key Terms 3
- fiscal 2027 A company's financial year, which may not match the calendar year.
- operating model How a company organizes its work to make and sell products.
- restructuring Changing how a company is organized to save money or grow.