Nike will cut costs in the coming years

In December, Nike cut its revenue forecast and announced cost-cutting amid growing concerns that consumers worldwide will cut back on spending. The company said it would seek $2 billion in savings over the next 3 years, the BBC reported.
Customers are changing their behavior, moving away from discretionary purchases of goods - such as expensive sneakers and sportswear - in favor of essential goods and experiences such as concerts and travel.
Nike also faces stiff competition from upstart brands like Hoka and On Cloud.
When presenting the company's latest financial results in December, Nike CFO Matt Friend said the gloomier outlook reflected "signs of more cautious consumer behavior around the world" and also cited "strengthened macro indicators in China and Europe".
China, the world's second-largest economy, faces huge challenges, from depressed consumers to a slump in the real estate sector and weaker exports.
Meanwhile, Europe avoided recession by the slimmest of margins in the final three months of 2023 as its economy shrank, official data confirmed on February 13. And Germany, the largest economy in the EU, contracted last year for the first time since the beginning of the covid pandemic./BGNES