Nike's 'Just Do It' job looks bigger than advertised

Nike is expanding its restructuring as its problems in China intensify, announcing further job cuts and a shake-up of its global business divisions after projecting a surprisingly steep drop in full-year revenue.

Morgan Stanley said weaker-than-expected wholesale sell-through could persist and lead to larger inventory builds than management forecasts. RBC Capital Markets said conditions would “get worse before they get better,” noting the impact of right-sizing initiatives through FY28 and larger-than-anticipated fixes in Jordan, Sportswear and Greater China. Bernstein said a weaker FY27 outlook, limited visibility beyond that and slowing sportswear demand could mute investor interest until there is greater clarity on strategy and long-term growth. Oppenheimer said successful repositioning may still be some way off and likely to entail further near-term “pain.”