By Sabela Ojea


Nike said revenue rose slightly in its fiscal third quarter amid a recovery in wholesale sales as the company implements a restructuring plan that includes about 1,600 layoffs.

The sneaker and apparel company on Thursday said profit fell for the three months ended Feb. 29 to $1.17 billion, or 77 cents a share, from $1.24 billion, or 79 a share, in the year-earlier quarter. Analysts polled by FactSet had forecast earnings per share of 69 cents.

Revenue rose 0.3% to $12.43 billion, coming in ahead of Wall Street expectations for $12.28 billion, according to FactSet. The company's namesake brand saw a 2% increase in sales, while sales of Converse suffered a hit of 19%.

The company saw a recovery in wholesale sales, as well as in its footwear category in North America, boosting its results in its main market. In Europe, the Middle East and Africa region sales dropped 3%, but sales rose 5% in China and 3% in Asia Pacific and Latin America.

Chief Executive John Donahoe said Nike is making the necessary adjustments to drive the company to its next chapter of growth.

"We're encouraged by the progress we've seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace," Donahoe said.

Nike's latest quarterly results come weeks after the company said it will reduce its workforce by about 2%, or more than 1,600, to reduce costs and increase investment in categories like running, women's apparel and the Jordan brand, according to an employee memo reviewed by The Wall Street Journal.

The company has been dealing with higher levels of competition from rival brands and concerns from customers about its ability to deliver innovative products. In recent years it also dealt with inflated inventories, which has resulted in deep discounts on items like apparel and footwear that have hurt profits.


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


(END) Dow Jones Newswires

03-21-24 1656ET