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Nike Faces Earnings Slump as It Restructures Product Lines

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Nike,Earnings,Revenue

Analysts predict a significant drop in Nike's earnings and revenue for the upcoming quarter. The company is implementing a strategy to revamp its product assortment by reducing supply for popular franchises like Air Force 1s, Dunks, and Air Jordan 1s. This move aims to recapture the exclusivity and desirability of these styles.

Analysts are expecting earnings per share of 64 cents on revenue of $12.18 billion, according to LSEG.>Sign up for NBC LA's News Headlines newsletter.

The dismal outlook comes as Nike works to turn around its business and fix its product assortment by pulling back on three of its key franchises: Air Force 1s, Dunks and Air Jordan 1s. Those stylesunder former CEO John Donahoe, but then became so commonplace that they lost their cool factor. Now Nike is trying to cut back supply.

Foot Locker's dismal quarter was a warning sign for Nike and a clue that investors may need to be patient as they wait for the sneaker giant to turn its business around. When Nike reports earnings Thursday, Hill will have been in the new role for just over two months, and it's going to take time to see the effects of strategy changes.

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