Nike warned of a softer revenue outlook in its second half and that it planned to cut $2bn in costs over the next three years, ultimately sending its shares more than 7 per cent lower in after-hours trading.
The athletic apparel group said Thursday that areas of potential savings included simplifying its product mix, increasing automation and “streamlining” its organisation.
The restructuring is expected to result in a pre-tax charge between $400mn and $450mn that will mostly be realised at the end of the current quarter.
Nike was now expecting “softer” revenue growth in the second half, chief financial officer Matthew Friend said in a statement.
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