Nike's Fiscal 2025 Outlook: Supply Cuts and Mixed Q3 Results

Nike expects a low single-digit percentage shrink in revenue for the first half of fiscal 2025 as it cuts supply of key products, including classic shoes like the Air Force 1 and current Pegasus Running shoes, to focus on upcoming launches and new products. The company's direct-to-consumer strategy has not been driving expected growth, and it is losing ground in the running category. Despite beating Wall Street estimates for third-quarter revenue and profit, Nike's stock fell 5.6% in extended trading as it faces rising competition from brands like On and Decker's Hoka.