March 5 (Reuters) - Nike will record about $300 million in pre-tax charges related to severance costs from a restructuring push at the footwear maker as CEO Elliott Hill looks to contain a margin bleed and refresh its product mix to revive sales.
The company cut about 775 jobs in the U.S. in January to speed up automation. Nike-owned Converse was also cutting corporate roles to realign its operating model with the parent company, Reuters reported in February.
The charges -- mostly related to employee severance costs -- will be recognized in the third quarter of fiscal 2026, and the company may take more such actions, which could result in additional charges, Nike said in a regulatory filing on Thursday.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Alan Barona)
Nike, Inc. specializes in the design, manufacturing and marketing of sports shoes, clothing, and equipment. The group's products are sold primarily under the names Nike, Jordan, Converse Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell. Net sales break down by family of products as follows:
- footwear (66.9%);
- clothing (28.1%);
- sports equipment (4.8%): golf equipment (golf clubs, balls, gloves, etc.), bags, balls, etc.;
- other (0.2%).
At the end of May 2025, products were being marketed through a network of 1,034 stores worldwide, through independent distributors, and via the Internet.
Net sales are distributed geographically as follows: North America (42.3%), Europe/Middle East/Africa (26.5%), China (14.2%), Asia/Pacific and Latin America (13.5%) and other (3.5%).
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