Shares of the world's largest sportswear maker were down 5.6% in extended trading.
In December, Nike outlined a $2 billion savings plan which included reducing the supply of underperforming products and improving its supply chain.
"We are pulling back the supply of classics, such as the Air Force 1, and we're reducing the supply of Pegasus ahead of launching new innovation in the Peg 41," said CFO Matthew Friend.
However, Nike beat Wall Street estimates for third-quarter revenue and profit on the back of holiday season discounts and newer sneaker launches, such as the Ultrafly trail running shoe, to draw back customers amid rising competition from brands such as On (ONON.N) and Decker's Hoka (DECK.N).
These newer brands have been taking away market share from the world's largest sportswear company due to innovative performance shoes such as On Running's Cloudflow 4 and Hoka's Clifton 9 and Bondi 8, which have thick foam soles that are resonating with customers.
Nike reported a 3% jump in North America, its largest market, and a 5% rise in Greater China, as heavy promotions on its Jordan shoes attracted customers during the all-important shopping season.
The company's quarterly profit of 77 cents per share topped estimates of 74 cents on the back of job cuts and its cost savings plan.
The world's largest sportswear maker said revenue rose 0.3% to $12.43 billion, beating LSEG estimates of $12.28 billion.
"There's nothing here that shows there is anything unusual in the quarter...as far as what this means for the company's turnaround...it doesn't mean much because the company is in a restructuring situation but it's really only started," said David Swartz, analyst at Morningstar.
