By Inti Pacheco
Nike reported flat sales for the quarter that ended Feb. 29, missing out on year-end holiday spending that lifted some brands.
The sneaker giant reported higher sales in North America and China, offset by declines in Europe and its Converse brand. Nike said its direct-to-consumer sales were flat and its digital sales declined for the quarter.
We are making the necessary adjustments to drive Nikes next chapter of growth, said CEO John Donahoe. In February, Nike said it would lay off about 2% of its workforce, or some 1,600 employees, as it works to reduce $2 billion in costs over the next three years.
Shares of Nike were little changed in after-hours trading.
In December, Nike cut its revenue outlook for the year and executives said they anticipated slower sales in the second half.
The sportswear company has been dealing with more competition from rival brands in recent years. It also dealt with inflated inventories, which has resulted in deep discounts that have hurt profits.
— Quarterly sales were $12.43 billion, compared with analysts estimate for $12.28 billion
— Gross profit margins increased, helped by higher prices and lower ocean freight costs