Nike optimistic despite fall in profit

Nike saw profits tumbled 21% last year after it was hit by restructuring costs and the global economic downturn.

The sportswear manufacturer reported net income fell to $1.5bn (£920m) in the year to May 31 despite seeing a 3% year-on-year uplift in revenues to $19.2bn (£11.8bn).

However, the company reported a sales dip in the fourth quarter, dropping 7% to $4.7bn (£2.9bn) in the three months to the end of May.

Earlier this year, Nike announced that it would reduce its overall global workforce by 5%, which equates to about 1,750 jobs. The company said the cuts would improve its consumer focus and competitiveness.

Mark Parker, president and chief executive of Nike, says the company is “strongly optimistic” about its long-term future.

“By focusing on what Nike does best – creating great product, telling great stories, and connecting with consumers, I believe that we will become a more valuable company for our shareholders,” he says.

Earlier this month, Nike promoted Gino Fisanotti to head up marketing for the UK and Ireland. He replaced Simon Pestridge, who moved to the role of global brand director.

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