Nike shares tumble as it cuts costs amid 'softer' outlook

NEW YORK - Nike promised up to $2-billion in cost savings involving job cuts and greater use of automation as it eyes "softer" sales in the coming period.

The sports giant reported an uneven performance across major markets in the latest quarter, with revenues declining in North America but rising in China, the Asia Pacific and Latin America.

Shares fell heavily in after-hours trading as Chief Financial Officer Matthew Friend described the environment as "highly promotional" during a conference call with analysts.

"We are seeing indications of more cautious consumer behavior around the world in an uneven macro environment," Friend said.

Profits for the quarter ending November 30 jumped 19 percent to $1.6-billion, while revenues edged up one percent to $13.4-billion.

The sports giant's cost-cutting plan will simplify product offerings, increase automation and institute a "streamlining" of the company organization, Nike said in a news release.

The plan anticipates a one-time charge of $400-million to $450-million in the current quarter primarily to cover employee severance costs.