Job losses on the cards as Nike focuses on profits
02/01/2024
Most of these savings will be invested to fuel growth, accelerate innovation and drive greater long-term profitability, it said.
The company suggested there will be restructuring charges of between $400 million and $450 million that will largely be recognised in the third quarter of fiscal year 2024, primarily associated with employee severance costs.
Matthew Friend, chief financial officer at Nike, said: “Nike’s second-quarter financial performance was a turning point in driving more profitable growth. As we look ahead to a softer second-half revenue outlook, we remain focused on strong gross margin execution and disciplined cost management.”
Second quarter 2024 revenues were $13.4 billion, up 1% on a reported basis.
CEO John Donahoe added: “We see an outstanding opportunity to drive long-term profitable growth. We are embracing a company-wide journey to invest in our areas of greatest potential, increase the pace of our innovation, and accelerate our agility and responsiveness."
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