WASHINGTON, Oct 2 (Bernama-dpa) -- Nike is tightening its cost-cutting drive as the US sportswear giant seeks to emerge from a downturn partly of its own making, reported German news agency dpa.
The company said a restructuring programme would deliver savings of US$2.5 billion over the coming years. Job cuts will also form part of the measures, chief executive Elliott Hill said in a conference call with analysts after Nike presented its quarterly results on Thursday.
Revenue fell 4 per cent year-on-year to US$11.2 billion in the latest quarter, while net profit declined 2 per cent to US$712 million.
Hill said consumers were holding back on spending. For the financial year running until the end of May 2027, Nike expects revenue to fall by a high single-digit percentage.
Shares in the company fell by around 4 per cent at one point in after-hours US trading.
Nike has been trying to recover from problems linked in part to its own strategy in recent years.
The company had increasingly focused on selling directly to consumers, reducing its reliance on traditional retailers. In the United States in particular, rival brands were able to gain shelf space in stores, putting pressure on Nike's sales.
Nike is now working to rebuild ties with retail partners.
Hill has also sought to sharpen the company's focus on athletes after lifestyle products took on a bigger role in its range.
--BERNAMA-dpa
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