Nike’s restructuring plan aims to compete and win in the current market, CEO John Donahoe says in a call with analysts. The shoe and apparel company, which focused on liquidating excess inventory in the 2Q in the midst of a highly promotional environment and increasing macro volatility, is seeing signs of cautious spending among customers. “Total retail sales across the marketplace fell short of our expectations with softer demand outside of the key consumer moments,” CFO Matt Friend says. Nike did, however, see strong consumer response to newness and premium innovation. The company is reducing management layers as part of its cost-cutting measures. Shares drop 9%, to $111.50, in after-hours trading.