Nike warned on Thursday that its revenue in the first half of fiscal 2025 will fall by a low single-digit percentage as the world's largest sportswear manufacturer reduces franchises to save costs.。

Nike issued the warning after the stock market closed, causing the stock's share price to fall about 6% in after-hours trading。Executives acknowledge that Nike's direct sales strategy is not driving growth as expected, and that the company is losing market share in the running category.。

In December, Nike outlined a $2 billion savings plan that included reducing the supply of underperforming products and improving its supply chain.。

At Thursday's results event, Nike Chief Financial Officer Matthew Freund told investors that the company is reducing orders for classic footwear, such as the Air Force 1, as well as current Pegasus running shoes, and shifting its focus to upcoming product launches and new product development.。

CEO John Donahoe said on a conference call: "It's not just about products or items here and there - it's about building a strong innovation pipeline.。"

Nike's third-quarter revenue and profit beat market expectations, fueled by holiday season discounts and the launch of new sneakers, including the Ultrafly trail running shoes it sees as a way to attract customers to counter growing competition from brands like On and Decker's Hoka.。

Donahoe promised investors that the company will launch more new running shoes this year, including "everyday runners" that incorporate retailer Nike's air cushion technology。

The company maintained its FY2024 revenue growth forecast of 1%。

As innovative performance shoes such as On Running's Cloudflow 4, Hoka's Clifton 9 and Bondi 8 are favored by customers, the new brand has been taking away Nike's market share。

Nike reported a 3% increase in sales in its largest market, North America, and a 5% increase in Greater China, as a large number of promotions for its Jordan shoes attracted customers to buy during this important shopping season.。

The company earned 77 cents a share, beating estimates of 74 cents, helped by layoffs and its cost-saving program.。

Nike says revenue up 0.3% to 124.$300 million, beating analyst expectations of 122.800 million dollars。