Nike Cuts Costs, Trims Some Franchises to Boost Profits Despite Slowing Revenue Growth

• Nike warned revenue will dip in 1H 2025 as it cuts back on key franchises like Air Force 1 to save costs • Scaling back direct-to-consumer strategy as it wasn't driving growth as expected • Unveiled $2B savings plan in Dec that includes reducing underperforming products and improving supply chain • Beat Q3 revenue and profit estimates on discounts and new launches like Ultrafly trail runners • Maintained fiscal 2024 revenue growth forecast of 1% as it focuses on new running shoe launches to draw customers