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Nike's Profits Plunge 35% Amid Spending Cuts

4/2/2026

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Story summary
  • Nike faces pressure as executives urge employees to cut spending after disappointing earnings.
  • Nike CEO Elliott Hill expressed frustration over slow turnaround at an all-hands meeting.
  • Nike beat estimates with 35 cents per share, but profits fell 35% year over year.
  • The company projects a 2%–4% sales decline next quarter, including a 20% drop in China.
  • Investors remain skeptical as Nike's stock has fallen more than 65% in five years.