BEAVERTON, Ore. — Nike Inc. outlined reorganization plans Friday that would reduce some of its management layers and focus the Nike brand into six regions instead of four.
The move is part of a broader corporate restructuring that may include the elimination of up to 4 percent of its workforce, as the world’s largest maker of athletic footwear and clothing contends with a consumer-spending pullback amid a global recession.
Citi Investment Research analyst Kate McShane expects the reorganization to better align Nike’s business and will leave it as a stronger player in the market once a recovery occurs. “We continue to view Nike as a relatively more defensive name, with solid brands, dominant and growing market share, a robust balance sheet and significant long-term growth opportunities in China and other emerging markets,” she wrote in a client note.
McShane maintained a “buy” rating and $61 price target.
The Beaverton, Ore.-based company, whose other brands include Converse, Cole Haan and Umbro, reorganized its business two years ago to increase sales. In February, Nike said its latest restructuring effort is the next step in that strategy.
“This new model sharpens our consumer focus and will allow us to make faster decisions,” Nike Brand president Charlie Denson said in a statement.
