Nike Cuts 775 Jobs to Enhance Profitability Amid Industry Restructuring
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Layoff Announcement: Nike has announced the layoff of 775 employees at its U.S. distribution centers as part of its strategy to enhance profitability and expedite automation, reflecting a broader trend of restructuring in the retail sector.
- Historical Cuts: This layoff follows the previous announcement of 1,000 corporate job cuts last summer, primarily affecting distribution center positions in Tennessee and Mississippi, indicating the company's response to sluggish sales and declining margins.
- CEO Strategic Shift: CEO Elliott Hill has indicated that while Nike is working to revamp its operations, the journey back to growth will not be linear, presenting an uncertain outlook for investors, particularly regarding challenges in the North American wholesale channel and the Chinese market.
- Stock Performance: Despite facing numerous challenges, Nike's stock has declined by 14.01% over the past year, yet it has shown slight recovery recently, suggesting a cautious optimism in the market regarding its potential for recovery.
Analyst Views on M
Wall Street analysts forecast M stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for M is 21.33 USD with a low forecast of 8.00 USD and a high forecast of 27.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 20.260
Low
8.00
Averages
21.33
High
27.00
Current: 20.260
Low
8.00
Averages
21.33
High
27.00
About M
Macy's, Inc. is an omni-channel retail company. The Company operates stores, websites and mobile applications under three brands, Macy's, Bloomingdale's and Bluemercury, which sell a range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. Its operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia. The principal private label brands offered by the Company include Alfani, And Now This, Aqua, Bar III, Cerulean 6, Charter Club, Club Room, Epic Threads, first impressions, Giani Bernini, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, I-N-C, jenni, JM Collection, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
