Nike sinks 12% after it slashes sales outlook, unveils $2 billion in cost cuts
Publishing timestamp: 2023-12-22 07:31:27
Summary
Nike plans to cut $2 billion in costs over the next three years and has lowered its sales outlook. The stock fell about 12% in premarket trading. Nike's revenue for the second quarter fell short of Wall Street's estimates for the second quarter in a row. The company attributes the lowered outlook to increased macro headwinds, particularly in Greater China and EMEA. Nike still expects gross margins to expand and aims to reinvest savings into future growth and profitability. The company reported strong earnings but fell short of sales estimates. Nike's gross margin increased, and its inventories were down. The retail environment has been flooded with promotions and discounts. Nike's sales in China and Europe, Middle East, and Africa fell short of estimates.
Sentiment: NEGATIVE
Tickers: LULU, FL, UAA, M, NKE, DBI, ADS-DE,
Keywords: dividends, breaking news: earnings, foot locker inc, nike inc, macy's inc, retail industry, business news, adidas ag, breaking news: business, earnings, designer brands inc, under armour inc, lululemon athletica inc, business,
Source: https://www.cnbc.com/2023/12/21/nike-nke-earnings-q2-2024.html