Nike (NKE) was the worst-performing stock in the Dow and 澳洲幸运5官方开奖结果体彩网:S&P 500 as shares tumbled over 10% in intraday trading Friday after the athletic apparel retailer slashed its full-year outlook because of “sof🥃ter” sales in the second half. It also anno🐻unced plans to reduce costs, which could include layoffs.

The company now expects fiscal 2024 revenue to increase approximately 1%, down from its earlier forecast of rising by a mid-single-digit percentage.

CFO Matt Friend explained that the new guidance reflected “increased macro economic headwinds,” particularly in Greater China and Europe, the Middle Ea🐼st, and Africa. He added Nike adjusted growth plans based on recent digital softness and higher marketplace promotions, life cycle management of key product franchises, and a stronger U.S. dollar.

Friend added that the company plans to cut $2 billion in costs over the next three years, noting that savings would come from across the business, not just from 澳洲幸运5ꦿ官方开奖结果体彩﷽网:selling, general, and administrative (SG&A) expenses. He said some examples would include “simplifying our product assortment, improving 澳洲幸运5官方开奖结果体彩网:supply chain efficiency, leveraging our scale to lower the marginal cost of operations, increasing automation and speed from data and technology, streamlining our organizational ♛structure, reducing management layers, and enhancing our procurement capabilities.”

Friend indicated that restructuring would result in a $400 million to $450 million charge in t༒he second half, “primarily related to severan🐻ce costs which will be recognized largely in the third quarter.”

In its fiscal secoꦛnd quarter, Nike posted a profit of $1.03 per share, beating estimates. Revenue was up 1% from a year ago to $13.4 billion, in line with expectations.

Nike shares were down 10.6% at $109.56 per share as of about 11:30 a.m. ET Friday following the news, and were in negative territory for the year.