NKE: Nike Laces Up for $2B Cost-Cutting Marathon, Stock Drops 12% in Off-Hours Trade

Despite the pushback, investors parsed through a 21% profit jump to $1.03 in Nike’s fiscal second-quarter earnings report.

• Nike stock NKE plunged 12% in pre-market trading Friday after the company revealed restructuring plans were a big part of the guidance from the fiscal second-quarter earnings report. Shares of Nike are up 3% on the year before today’s session drags them deep into the red.
• The sportswear maker trimmed its sales outlook for fiscal 2024 to growth of 1%, down from its earlier projection of mid-single-digit increase. What’s more, over the next three years, the company will seek to cut costs by $2 billion in efforts to gradually offset an expected decline in revenue.
• For the quarter, Nike earned $1.03 a share, a 21% increase year-on-year. Net income arrived at $1.6 billion, topping expectations, while revenue ticked up 1% to $13.4 billion, in line with the consensus. Moving into the current three months, the market leader is likely to churn out revenue just under the flatline.