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Nike reported its worst quarterly earnings in more than three years but expressed optimism that the biggest drag from its corporate turnaround strategy may soon be in the past.
The Oregon-headquartered company on Thursday announced fourth-quarter revenue of $11.1bn, which surpassed analyst expectations but were the lowest figure since the third quarter of 2022.
The sportswear maker posted quarterly net income of $211mn, an 86 per cent drop from the same period last year, and its lowest since the fourth quarter of its 2020 financial year.
Chief financial officer Matthew Friend said the results “reflected the largest impact” from the company’s turnaround programme, adding that Nike expected “the headwinds to moderate from here”.
Nike is contending with the after-effects of an unsuccessful emphasis on direct-to-consumer sales. Analysts have also criticised it for its dependence on lifestyle products and reliance on fashion trends.
Shares in Nike were down 1 per cent in after-hours trading.
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