(New York) The sports clothing and equipment group Nike announced Thursday that it had identified up to two billion dollars in savings over three years, with more automation, an overhaul of its ranges and a reduction in its workforce the extent of which is not specified.
On the occasion of the publication of its results for the second quarter of its staggered financial year, the group specified in a press release that the majority of these savings would be “invested to finance future growth, accelerate innovation at pace and in scale, and generate superior long-term profitability.”
Implementing this cost-cutting program is expected to result in a pre-tax charge of approximately $400 million to $450 million, much of which will be incorporated into its third-quarter results.
It will above all be about severance pay, he simply indicated.
“We see an exceptional opportunity to generate long-term growth in profitability,” commented John Donahoe, CEO of Nike, quoted in the press release.
“Today, we are committing the company as a whole to a path to invest in our activities with the greatest potential, to increase our momentum towards innovation and to accelerate our agility and our capacity to react,” he said. he adds.
In the second quarter, ended November 30, Nike reported revenue of $13.39 billion (+1%) and net profit of $1.58 billion, a 19% year-over-year jump. .
Reported per share and excluding exceptional items – a benchmark for the markets – the profit came to $1.03, when the consensus was forecasting 84 cents.
But the group reported a “softer environment” regarding its revenue forecasts for its second half.
In electronic trading after the New York Stock Exchange closed, Nike shares fell 5.33%.