By Sabela Ojea

Nike trimmed its fiscal-year revenue guidance on views for a negative topline performance in the current quarter.

Shares drop 11%, to $108.97, in after-hours trading Thursday.

The shoe and apparel company now expects to end its fiscal year ending in May with revenue growth of about 1%, Finance Chief Matt Friend said during a call with analysts.

Nike had most recently guided for full-year revenue growth of mid-single digits.

The company also forecasts revenue to be up low-single digits in the fourth quarter, Friend added.

Nike's outlook comes as it announces $2 billion cost-cutting plan amid growing competition from rivals such as Deckers Outdoor-owned Hoka and Swiss footwear company On.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

December 21, 2023 18:29 ET (23:29 GMT)

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