Nike Warns of Revenue Dip as it Cuts Back on Products

Nike warned that its revenue in the first half of fiscal 2025 would shrink by a low single-digit percentage as the world’s largest sportswear maker scales back on franchises to save costs.

Nike’s warning came after the stock market closed Thursday, and shares were down about 6% in extended trading. Executives acknowledged that Nike’s direct-to-consumer strategy was not driving growth as expected and that it was losing ground in the running category.

In December, Nike outlined a $2 billion savings plan, which included reducing the supply of underperforming products and improving its supply chain.

In a post-results call on Thursday, Nike CFO Matthew Friend told investors that the company was cutting back on orders of “classic” shoes such as the Air Force 1, as well as current Pegasus Running shoes, as it shifted its focus to upcoming launches and developing new…