Spokeswoman Mary Remuzzi said that the restructuring included shifting employees to new positions that help optimize the new model. Nike’s European unit is one of the two regions that failed to generate two digit revenue and the only to post negative earnings.

Nike’s European profits fell by 6% this quarter, paired by a 7% increase in sales, rising sales to over $1 billion. Profits are down 18% to $597 million and sales rose 4% to $4.1 billion for the fiscal year. Worldwide, Nike had a revenue growth rate of 12%. 12% is a decent rate of growth, however, they also faced a 12% increase in sales and administrative expenses. Nike’s margins fell 7.6%.

David Cornes holds a degree in Economics from the University of Montana.