The move is part of a broader corporate restructuring that may include the elimination of up to 4 percent of its work force, 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, Oregon-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.
The new regions will include: North America, Western Europe, Eastern/Central Europe, Greater China, Japan and emerging markets. Previously, the Nike brand was organized by regions including the United States, Asia Pacific, Americas and Europe, Middle East and Africa.
Last month, Nike said it might cut up to 1,400 jobs. The company expects to complete a review of its businesses by the end of May, when its fiscal year ends. Nike employs nearly 35,000 people worldwide.
In recent quarters, the company has started to show the pressures of the recession as its sales slowed, particularly in the U.S., where consumers are cutting back sharply on discretionary purchases. Wednesday, the company said its profit, revenue and future orders dropped in its third quarter.
In addition, Nike Inc. Affiliate portfolio President Lee Bird has left the company to pursue other interests and will be succeeded by Eunan McLaughlin, former vice president and general manager for the Nike EMEA region.
McLaughlin will report to Nike President and Chief Executive Mark Parker.
Shares of Nike fell $1.01 to $45.49 in midday trading Friday.
