By Will Feuer

Shares of Foot Locker and Dick's Sporting Goods traded lower after sneaker giant Nike lowered its full-year sales outlook and launched a three-year plan to cut up to $2 billion in costs.

Nike shares tumbled almost 12% to $108.40 in premarket trading. The warning also hit retailers Foot Locker and Dick's, both major wholesale customers of Nike.

Foot Locker stock fell more than 7% to $30 in the premarket session on Friday. The stock was already down more than 14% this year through Thursday's market close.

Shares of Dick's, up about 22% this year, fell more than 4% to $140.50 in premarket trading.

Nike Chief Financial Officer Matt Friend said Thursday evening that the company is grappling with soft demand outside of key periods such as back-to-school shopping and Black Friday. He said its competitors are also getting more promotional, putting price pressure on the whole sector.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

December 22, 2023 07:00 ET (12:00 GMT)

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