is struggling to sell clothing and apparel and those “near-term challenges” prompted the retail giant to post one of its . Shares of Nike were after the company reported that signaled it is dealing with economic and consumer headwinds. Nike’s chief financial officer Matthew Friend said in a statement that the retailer’s fourth-quarter results “highlighted challenges” that prompted it to reassess its fiscal 2025 outlook.
“We are taking actions to reposition Nike to be more competitive, and to drive sustainable, profitable long-term growth,” Friend said. Friend told investors during the earnings call that for the fiscal 2025 year the company expects lower digital growth, a decline in classic footwear trends, increased macro-uncertainty, and uneven consumer trends. He added that Nike plans to keep , such as and .
Moreover, the retailer forecasts revenue will be down in the mid-single digits for the year. For the current quarter, Nike expects sales to decline by 10% due to a slowdown in its Chinese market and waning consumer demand around the world. Beaverton, Oregon-based Nike fell short of meeting Wall Street’s estimates.
During the fourth quarter, it generated $12.61 billion in revenue. The Street forecasted it would report $12.
84 billion, according to FactSet. Its underperformance was also impacted by its subsidiary shoe business, Converse, which reported an 18% sales decline, largely led by a pullback in consumer spending in North American and Western Europ.
