reported a surprise drop in fourth-quarter revenue on Thursday, as it struggled with low demand for its apparel and footwear amid rising competition from newer brands, sending its shares down nearly 6 per cent in extended trade.
The company’s efforts to drive more sales through its direct-to-consumer channel have also taken a hit as customers have turned more picky about their non-essential spending and look to spend their dollars on more fashionable and innovative brands such as On and Deckers’ Hoka. The Air Jordan maker is also doubling down on wholesale partnerships after years of avoiding that path. But the company’s direct-to-consumer push was not driving growth, Nike executives said in March.
Nike’s net revenue fell 1.71 per cent to $12.61 billion, compared with analysts’ average estimate of $12.84 billion, according to LSEG data.