NIKE: With losses and cost reductions
At the end of 2023, the leading North American sports footwear brand announced a drastic reduction in operating costs for the next 3 years, including massive employee layoffs.
The measure comes as a result of the negative indices recorded in the last quarter, which closed in November 2023, due to declining sales and the growing competition from brands like California's HOKA and Swiss ON, controlled by the holding company of former tennis player Roger Federer.
Matthew Friend, CFO of NIKE, stated that they are receiving a warning from consumers, indicating a more cautious future behavior with fewer sales.
NIKE's shares fell by 11.8% on the New York Stock Exchange after announcing the reduction in earnings by US$ 2 billion over the next 3 years.