Nike loses market share to upstart sneaker brands

Nike is starting to lose share to upstart sneaker brands such as On and Hoka and will need to invest in fresher styles, analysts said on Friday.

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The Air Jordan 1 shoemaker mainly blamed cautious consumer spending for the downbeat forecast on Thursday and laid out a $2 billion cost-saving program.

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European rivals Adidas and Puma closed 5 per cent and 7 per cent lower, respectively, while shares of Lululemon and Under Armour fell about 1 per cent and 4 per cent.

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Nike also said it would incur about $400 million to $450 million in employee severance costs in the current quarter, but did not specify the number of jobs it would cut.

Source: Unsplash