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Nike warned investors on Thursday that its sales revenue could fall as it cuts back on classic shoes and focuses on innovating new products.
The company expects revenue to dip by a low-single-digit percentage in the first half of its fiscal year, beginning in June, according to Reuters. Nike CFO Matthew Friend told investors in a post-results call on Thursday that the company intends to make fewer of its classics, like Air Force 1s and Pegasus running shoes, in favor of new products.
“We know Nike’s not performing at our potential,” Chief Executive Officer John Donahoe said on a conference call, according to Bloomberg. “It’s been clear that we need to make some important adjustments.”
Nike shoes at a Macy’s store on March 21, 2024, in San Francisco, California. (Photo by Justin Sullivan/Getty Images)
Donahoe told investors that new running shoes were on their way this year, including shoes targeted at “everyday runners” with Nike Air cushion support.
Related: Casual Runners Are Racing Away From Nike and Toward Competitors — Here’s Why
Back in December, Donahoe told investors about a $2 billion savings plan to cut costs over the next three years. In February, the company stated that the plan would involve reducing its global workforce of 83,700 employees by 2%.
Nike is the world’s largest sportswear retailer, according to Statista, outpacing competitors like Adidas and Puma in footwear revenue by at least $15 billion in 2022. Footwear makes up the majority of Nike’s profits at 68%, according to the same source.
The retail giant has recently faced challenges due to shifting consumer demand for the look and feel of shoes and industry competitors like Hoka and On, per a Reuters report.
Related: ‘A Hell of a Round’: Tiger Woods Severs Partnership With Nike After 27 Year
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The Enugu State Government has ordered all public servants and political office holders in the state to begin reporting to their places of work on Monday or face sanctions.
The order came exactly one month after the State Governor Peter Mbah banned the sit-at-home order in the state, usually enforced by a faction of the outlawed Indigenous People of Biafra (IPOB).
PREMIUM TIMES learnt that the order to the public servants and political office holders was part of Mr Mbah’s efforts to prevent them from complying with the Monday sit-at-home order usually observed in Enugu and other South-east states.
A top official of the government, who asked not to be named because he was not permitted to speak on the matter, told this newspaper on Monday that every worker in the state had been notified of the directive to report to work on Mondays.
“You know the governor has banned the sit-at-home in this state. So, there is no point allowing the workers to stay at home again on Mondays,” he said.
The Head of Service (HoS) in Enugu State, Ken Ugwu, on Friday in a circular obtained by PREMIUM TIMES, said the order to report to work on Mondays follows the cancellation of the sit-at-home in the state by Governor Mbah.
Mr Ugwu said the Monday sit-at-home “had promoted laxity, low productivity and depleted the resources” of the state.
“To this end, and to further reinforce the governor’s directive, all public/civil servants in the state are hereby directed to ensure that they report to their duty posts every work day, including Mondays, as government has put all necessary security measures in place to ensure their safety,” he said in the circular.
“Failure to adhere strictly to this directive would attract severe sanctions,” Mr Ugwu added.
The circular, addressed to key officials of the state government, also directed political officeholders, permanent secretaries and all heads of extra-ministerial departments to ensure compliance.
Meanwhile, PREMIUM TIMES observed that residents of Enugu State have continued to observe the sit-at-home despite the pronouncement by Governor Mbah declaring an end to the civil action in the state.
The residents have continued to shun their businesses in compliance with the civil order declared by the separatist group.
IPOB, in August 2021, introduced a sit-at-home order every Monday across the South-east to pressure the Nigerian government to release its detained leader, Nnamdi Kanu, who is standing trial for alleged terrorism at the Federal High Court, Abuja.
The separatist group later suspended the order, in preference for it to be implemented only on days Mr Kanu appears in court.
But despite its suspension, residents of the five South-east states – Enugu, Ebonyi, Imo, Abia and Anambra — have been observing the Monday sit-at-home order, primarily out of fear.
IPOB had repeatedly disowned the Monday sit-at-home across the region, saying those who still enforce the order were criminals attempting to blackmail the separatist group.
A leader of Autopilot, a faction of the IPOB, Simon Ekpa, has continued to declare sit-at-home orders in the region despite being suspended by the IPOB faction led by Mr Kanu.
IPOB is leading the agitation for an independent state of Biafra, which it wants carved out from the South-east and some parts of south-south Nigeria.
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