Nike shares drop 10% as revenue slips and layoffs loom
The sportswear giant's stock extended a second straight day of declines after reporting weaker revenue and plans to cut staff, CNBC reported.
Written by EGazette’s AI. The facts are drawn from cited sources; the analysis is the AI’s own.
Shares of Nike fell as much as 10% in premarket trading, according to CNBC, marking a second consecutive day of declines for the sportswear company.
The slide followed Nike's latest earnings report, which showed falling revenue alongside announced plans to lay off staff. The report did not specify the exact revenue figures or the scale of the planned layoffs.
Investor reaction
The sharp drop in Nike's share price reflects investor concern over the company's near-term growth prospects, as weaker sales figures combined with cost-cutting measures such as layoffs are often read by markets as signs of broader demand or margin pressure.
CNBC's report does not detail which segments of Nike's business were most affected by the revenue decline, nor does it specify a timeline for the planned job cuts.
Nike, one of the world's largest sportswear and footwear makers, has faced a competitive retail environment in recent years, with the stock move adding to scrutiny of the company's turnaround efforts.
Sources
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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