Nike plans to combine sales divisions, reducing roles over time

Nike has reported quarterly revenue of $11bn, below analysts’ expectations, and expects revenue to fall by a high-single-digit percentage in the financial year ahead. The company also plans $2.5bn in savings by 2031, with some of the cuts expected to cost jobs. It has not put a figure on the planned job losses. [1]

The figures add to a difficult period for the sportswear company. Its share price has fallen 75% over five years, and it left the S&P 100 index in September. Footballer Kylian Mbappé also ended his 20-year association with Nike last week to join Swiss rival On. [1]

Sports-retail analyst Matt Powell argues that Nike’s reduced ties with retailers, push towards selling directly to customers online and wider availability of limited-edition products have contributed to its difficulties. Weaker demand in markets including China has also prompted cost cuts and redundancies. [1]

There are signs of progress under chief executive Elliott Hill’s turnaround plan, though change has been slow, the BBC reports. Powell expects Nike to remain the market leader but says its dominance has been dented. [1]

Update

Nike plans to combine its sales divisions, according to an ANP/Bloomberg report. A staff memo seen by Bloomberg says the change will mean fewer positions are needed over time. [2]

The plan follows a quarter in which Nike’s revenue fell 4% from a year earlier to $11.2 billion. [2]