Nike cuts annual sales forecast, seeks $2 billion in cost savings amid ‘softer’ outlook; shares plunge

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Key Points

Nike on Thursday cut its annual sales forecast amid weak online business trends and cautious consumer spending..

The sportswear giant projected full-year revenue to rise 1%, down from its previous forecast of mid-single-digit percentage growth..

The company said it was seeking $2 billion in savings over the next three years through steps including tightening product supply, reducing management layers, increasing the use of automation and improving its supply chain, Reuters reported..

In its statement, Nike said it expects to incur restructuring charges of $400 million to $450 million in the current quarter, primarily associated with employee severance costs.".

Sales in Greater China rose 4% in the Q2, slowing slightly from the 5% increase seen in the previous quarter, signaling that demand was yet to stabilize in the market. ..

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