Nike Beats Q3 Fiscal 2024 Expectations but Faces Weak Sales Outlook

Shares drop after the company announces plans to cut back on classic models and focus on innovation.

Nike's revenue and profit for Q3 fiscal 2024 exceeded analysts' expectations, with a reported revenue of $12.43 billion and earnings per share of 77 cents.
Despite the positive earnings report, Nike shares fell nearly 6% in after-hours trading as the company issued weak sales guidance for the first half of fiscal 2025.
Nike plans to cut back on classic shoe models such as the Air Force 1 and Pegasus to focus on new product launches and innovation.
The company maintains its fiscal 2024 revenue forecast of 1% growth and continues its $2 billion cost-cutting plan, including job cuts and inventory reduction.
Nike aims to leverage the 2024 Summer Olympics in Paris for new product launches and marketing campaigns to regain market share and drive growth.