Nike has lost more than $500 million on the US market, the world’s biggest and fastest-growing apparel market.
The company reported the loss on Tuesday in its annual results.
The Irish Independent had earlier reported that the loss had exceeded the $300 million mark.
Nike was hit by a slowdown in China, the United States and Europe.
The Chinese market grew by 8.6 per cent in the year to March, while the United Kingdom grew by 1.6.
It was also the worst performer in Asia, with its sales down 6 per cent.
It has had to slash the size of its workforce by about 3,000 people, or about 20 per cent of its current workforce.
It will also have to close about 10,000 stores in the US and the rest of Europe as part of a restructuring of its global business.
Sales were down in the Americas and Europe, where the brand is also known as Yeezy.
In the UK, Nike was down 6.9 per cent, while in the Middle East, where it has had strong sales in the past year, the company saw its sales fall by 4.3 per cent on the year.
Sales in the Asia-Pacific region were down 7 per cent to $3.6 billion.
Sales of its Nike+ footwear brand were down 5.9 percent in the quarter.
In a statement, the Irish company said it was disappointed with the results, but also expected to make a positive contribution to growth.
In its earnings call on Tuesday, Chief Executive Officer Phil Knight said the company would “work to maintain its position as the leading footwear brand in the world”.
“The global marketplace is now in a better position than ever to benefit from the strength of the global brands, and to continue to grow,” he said.