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Nike stock misery continues after another dreadful quarter and outlook: Wall Street reacts

Nike shares plummeted 10 percent after the sportswear giant reported lower first-quarter revenue and announced a sweeping restructuring plan that includes job cuts. The company projected a sales decline for the year and warned of additional layoffs next year amid an evolving operating model. The dismal financial results and gloomy outlook drove the stock to its lowest level in 13 years, triggering a broad decline across the athletic apparel sector as Wall Street reacted to the deepening struggles under the current turnaround effort.

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  • ✓ Nike shares plummeted 10 percent after the company reported falling revenue and layoff plans.
  • ✓ The stock dipped to its lowest level in 13 years following the announcement of a new restructuring plan.
  • ✓ Nike projected a sales decline for the year following lower first-quarter revenue.
  • ✓ The company warned of new layoffs next year amid a changing operating model.
🛡️ Source Corroboration: 14 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

Nike reported a lower first-quarter revenue, issued a weak annual sales projection, and announced sweeping restructuring plans involving job cuts.

Live updates

  1. Nike Shares Plunge to 13-Year Low After Weak Revenue and Layoffs

    Nike shares plummeted 10 percent after the sportswear giant reported lower first-quarter revenue and announced a sweeping restructuring plan that includes job cuts. The company projected a sales decline for the year and warned of additional layoffs next year amid an evolving operating model. The dismal financial results and gloomy outlook drove the stock to its lowest level in 13 years, triggering a broad decline across the athletic apparel sector as Wall Street reacted to the deepening struggles under the current turnaround effort.

    Why it matters

    The steep downturn tests investor confidence in the leadership's ability to correct course after persistent operational missteps and weak financial performance. The negative guidance also weighed heavily on competitors across the athletic apparel sector, dragging down the stock prices of rival brands including Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor. The persistent decline highlights systemic challenges facing major athletic retailers as consumer demand shifts.

    What is confirmed

    • Nike shares plummeted 10 percent after the company reported falling revenue and layoff plans.
    • The stock dipped to its lowest level in 13 years following the announcement of a new restructuring plan.
    • Nike projected a sales decline for the year following lower first-quarter revenue.
    • The company warned of new layoffs next year amid a changing operating model.
    • The warning from Nike hit stock prices for Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor.

    What to watch next

    • Execution and scale of the upcoming job cuts and restructuring plan
    • Performance of rival athletic apparel brands following sector-wide share drops
    • Further investor reactions regarding CEO Hill's turnaround strategy
    Sources used for this update (18)
    1. OregonLive.com — Nike announces new restructuring, layoffs. Stock dips to lowest level in 13 years
    2. WSJ — Nike Projects Sales Decline This Year After Lower First-Quarter Revenue
    3. Fox Business — Nike plans job cuts under sweeping restructuring plan
    4. Reuters — Nike plans more job cuts to boost sputtering turnaround, forecasts steep revenue drop
    5. WWD — Nike CEO Warns of New Layoffs Next Year Amid Changing Operating Model
    6. CNBC — Nike shares plummet 10% after weak revenue outlook and layoff plans underway
    7. Yahoo Finance — Nike warning hits stocks prices of Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor
    8. Reuters — Nike's struggles test investor confidence in CEO Hill's turnaround effort
    9. finance.yahoo.com — Nike stock misery continues after another dreadful quarter ...
    10. www.cnbc.com — Nike stock falls 10% after revenue falls and layoff plans ...
    11. Yahoo Finance — Nike stock misery continues after another dreadful quarter and outlook: Wall Street reacts
    12. sports.yahoo.com — Y! Sports Biz: Down 80%
    confidence 100%
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