Nike (NKE) said Thursday it now expects full fiscal year revenue to be up 1%, cutting its previous guidance of mid-single-digit percentage growth as it cites a slowdown in demand and a highly promotional environment.
The company said it plans to save $2 billion in costs over the next three years by simplifying its product assortment, streamlining supply chains and reducing management layers, among other initiatives.
Nike posted fiscal Q2 adjusted diluted EPS of $1.03 on revenue of $13.39 billion, higher than $0.85 on $13.32 billion a year earlier. Analysts polled by Capital IQ had expected $0.85 on $13.43 billion. However, Nike Chief Financial Officer Matthew Friend said in an earnings call that the company is “seeing indications of more cautious consumer behavior around the world in an uneven macro environment.”
Nike shares fell 12.2% in recent Friday premarket activity.
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