Nike withdrew its full-year forecast after first-quarter revenues plummeted 10% as it wipes the slate clean for incoming CEO Elliott Hill
The sportswear giant has been grappling with slowing consumer demand and declines across key markets as direct-to-consumer sales dropped 13% to $4.7bn (£3.8bn), while wholesale revenues dipped by 8%.
The results come as the sporting giant prepares for a leadership change, with Hill – a Nike veteran – set to take over as CEO from John Donahoe on 14 October.
The retailer’s European operations were particularly hard hit with EMEA revenues down 13% to $3.1bn (£2.5bn), as both footwear and apparel sales declined amid stiff competition from rising brands such as Hoka and On in the running market.
North America, Nike’s largest market, also saw an 11% sales plunge, driven by a 14% decline in footwear sales.
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In response to the disappointing quarter, the sportswear brand is pushing ahead with its cost-saving initiatives launched in December 2023 in a bid to cut $2bn (£1.5bn).
The business has also been streamlining its product offering and focusing on automation to boost efficiency. Despite these moves, the brand’s digital sales crashed 20% globally.
Nike CFO Matthew Friend said: “Nike’s first quarter results largely met our expectations. A comeback at this scale takes time, but we see early wins — from momentum in key sports to accelerating our pace of newness and innovation.
“Throughout our history, Nike has always faced pressure,” Friend added. “We will continue to address the challenges head-on, and look forward to Elliot’s leadership.”
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