Nike Inc. is cutting jobs and embarking on a sweeping overhaul of the business as results deteriorate and test Wall Street's patience with Chief Executive Officer Elliott Hill. Sportswear, roughly 50% of Nike's business, is still down, Jordan is down, and China plunged 26% in the latest quarter, according to Bloomberg Intelligence senior US e-commerce and retail analyst Poonam Goyal. Goyal credited Hill with fixing North America and the performance business, which grew high single digits in the latest fiscal quarter, but said the turnaround will take more than 12 months and that investors will hear more at the analyst meeting in November. Nike already has a 2.5 billion dollar cost-savings plan in place that carries 1 billion dollars in restructuring costs, she said, adding that the remaining problem is product-led. Jordan, which Goyal said is 13% of Nike's sales and a 7 billion dollar business, suffered from flooding the marketplace with retro product, eroding the exclusivity, selection and scarcity that make the brand work.
Nike IncNike is cutting jobs and overhauling the business as results deteriorate, with a $2.5B cost-savings plan carrying $1B in restructuring costs.
