Nike Inc. (NYSE: NKE), apparently trying to streamline its corporate management structure, has laid off workers at its headquarters. The company suffers from a tepid market and harsh competition inside and outside the United States.
The layoffs included 740 people. The problem is more significant than it seems. Nike called this its “second round of layoffs.” Earlier in the year, Nike said it would cut 2% of its workforce.
Nike’s share price has collapsed this year. It is down 26%, while the S&P 500 is up 19%. Nike’s stock price prediction for 2030 tells a different story.
In the most recent quarter, revenue was flat at $12.4 billion, and net income was down 5% to $1.2 billion. Among the problems is that it describes itself first and foremost as a “growth company ” on its investor relations page.” That statement is not true. John Donahoe, President and CEO of Nike, commented, “We are making the necessary adjustments to drive Nike’s next chapter of growth.” So far, his plans have gone nowhere.
Another sign of trouble at Nike is that, based on earnings before interest and taxes, Nike’s numbers dropped in Europe, the Middle East, and Africa. They also dropped in the Asia-Pacific region.
Nike has considerable competition. Adidas is about half its size in revenue, and Puma and Lululemon Athletica Inc. (NASDAQ: LULU) are about 20% as large. Nike once was a “growth company,” but it isn’t anymore.
∴
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.