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● LIVE Updated 50m ago · 8 sources tracked

Nike warning hits stocks prices of Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor

Nike shares fell 10% following a weak revenue outlook and a first-quarter revenue slip of 4%. The company projects a sales decline for the current year and has announced a restructuring plan including job cuts and $2.5 billion in cuts. This downturn has affected the stock prices of other athletic brands, including Lululemon, On, Under Armour, and Deckers Outdoor, the maker of Hoka. Investors are now questioning the effectiveness of CEO Hill's turnaround efforts as the recovery process takes longer than anticipated.

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  • ✓ Nike shares fell 10% after the company provided a weak revenue outlook and announced layoff plans.
  • ✓ Nike projects a decline in sales for this year.
  • ✓ First-quarter revenue for Nike slipped 4%.
  • ✓ Nike is implementing a restructuring plan that includes job cuts.
🛡️ Source Corroboration: 8 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

Nike announced a $2.5 billion cost-cutting measure and a 4% first-quarter revenue decline.

Live updates

  1. Nike Shares Drop 10% Amid Sales Decline and Restructuring Plans

    Nike shares fell 10% following a weak revenue outlook and a first-quarter revenue slip of 4%. The company projects a sales decline for the current year and has announced a restructuring plan including job cuts and $2.5 billion in cuts. This downturn has affected the stock prices of other athletic brands, including Lululemon, On, Under Armour, and Deckers Outdoor, the maker of Hoka. Investors are now questioning the effectiveness of CEO Hill's turnaround efforts as the recovery process takes longer than anticipated.

    Why it matters

    Nike is a dominant force in the global athletic apparel market. These financial struggles indicate broader challenges in consumer demand or competitive pressure from emerging brands. The restructuring aims to stabilize the company's financial position.

    What is confirmed

    • Nike shares fell 10% after the company provided a weak revenue outlook and announced layoff plans.
    • Nike projects a decline in sales for this year.
    • First-quarter revenue for Nike slipped 4%.
    • Nike is implementing a restructuring plan that includes job cuts.

    Still unconfirmed

    • Nike announced $2.5 billion in cuts following a disappointing quarter.
    • Nike's warning impacted the stock prices of Lululemon, On, Under Armour, and Deckers Outdoor.
    • Investor confidence in CEO Hill's turnaround effort is being tested.

    What to watch next

    • Details on the specific number of job cuts under the restructuring plan
    • Quarterly earnings reports from Lululemon, On, and Deckers Outdoor
    • Updates on CEO Hill's turnaround strategy execution
    Sources used for this update (8)
    1. WSJ — Nike Projects Sales Decline This Year After Lower First-Quarter Revenue
    2. Fox Business — Nike plans job cuts under sweeping restructuring plan
    3. CNBC — Nike shares plummet 10% after weak revenue outlook and layoff plans underway
    4. Yahoo Finance — Nike warning hits stocks prices of Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor
    5. Reuters — Nike's struggles test investor confidence in CEO Hill's turnaround effort
    6. WWD — Despite a Longer-Than-Expected Turnaround, Here’s What’s Working for Nike
    7. KGW — Nike announces $2.5B in cuts after another disappointing quarter
    8. KATU — Oregon-based Nike outlines new restructuring as revenue slips 4% in first-quarter earnings
    confidence 90%
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