Overview
- An SEC filing says Nike expects approximately $300 million in pre-tax charges for the nine months ended Feb. 28, 2026, with substantially all recognized in fiscal Q3 2026 and primarily tied to severance.
- Confirmed workforce actions include roughly 775 U.S. job cuts in January and a WARN notice to permanently eliminate 583 positions at the Memphis distribution center effective April 3.
- The company is consolidating U.S. distribution operations across Tennessee and Mississippi as part of its drive for automation and efficiency.
- Converse reduced corporate roles and has seen about a 30% revenue decline, leading a BNP Paribas analyst to speculate about a possible divestiture, though Nike says it remains committed to the brand.
- Management signaled potential additional actions that could bring more charges in future quarters, and NKE shares are down about 8.9% year-to-date and 26% over the past 12 months.