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🔴 Headline: "How Nike's Missteps Led to COVID Lows and Increased Competition" Hey LinkedIn fam, have you been following Nike's journey through the challenges of the pandemic? It's been quite a ride! A recent Sky News article shed light on how a series of missteps led to a decrease in Nike's share price and an increased competitive landscape with younger rivals. It's a reminder of how crucial it is for even the biggest players in the industry to stay agile and adaptable, especially during times of uncertainty. Let's dive into the article and discuss the valuable lessons we can learn from Nike's experiences. Check out the article and let's start a conversation about the evolving dynamics in the sportswear market. #Nike #BusinessStrategy #MarketCompetition https://ift.tt/yVpiOZq

Nike’s $27.5 billion loss highlights the fact that no business is above the fundamentals of business growth.    In his recent article for Mi3Australia, AFFINITY Group CEO Luke Brown unpacks how Nike’s 2020 move to focus on short-term returns ended in a long-term disaster. This is an epic tale underlining the importance of ensuring business strategy is driven by the right goals.    Read more in Mi3: "The real reason behind Nike’s $27.5 billion loss: A cautionary tale of growth gone wrong”. https://lnkd.in/gqQgF_TP   #GrowthAccelerator #BusinessStrategy #short-termism

💰 Our new #RevenueRadar report is out - under the spotlight this week is Nike. Nike's fiscal 2024 earnings report reveals mixed performance ahead of the #Olympics. While full-year revenues saw a slight increase, the fourth quarter faced a decline, reflecting challenges like softening demand and inventory issues. Despite a 45% surge in net income for Q4, investor confidence has waned due to projected sales declines for fiscal 2025. Nike's strategic focus on product innovation, direct-to-consumer expansion, and cost-cutting measures aims to navigate these headwinds and leverage the upcoming Paris Olympics for brand revitalisation. Read more: https://lnkd.in/ePKMPuCr #EarningsReport #SportswearIndustry #CFOInsights #BusinessStrategy #Olympics2024

Closing Factory store delivering strong EBIT, with solid sales and serving under penetrated markets has been a trend for years. Trading those doors for the new concept which deliver much lower EBIT and even lower sales then the prior locations was a pipe dream and showed a lack of understanding of their consumers and markets. Closing Santa Fe factory store and walking away from the market was the first of many poor decisions lacking any gameplan to serve those consumers in the future. Open a new store in Albuquerque, keep both stores open to comp any cannibalization and then make the decision to keep Santa Fe open or close the door at that point. Business 101! There are more recent examples of similar moves in other markets. Closing these new underperforming doors being lifted up by ship to store online business will start to rear its ugly head in the near future. It is going to get much worse for DTC in NA before it gets better. Consumer facing employees and consumers will be impacted.

Nike has dominated the market for years, but falling sales in Q1 mark its worst performance since the late 1990s. CEO John Donahoe, who took over in 2020, shifted focus to a direct-to-consumer strategy. This move paid off during the pandemic as digital channels grew, with the sneakers app doubling users and digital sales hitting 30% by May 2020. However, cutting ties with a third of its wholesale partners, which had brought in $25 billion in 2019, backfired as consumers returned to in-store shopping post-pandemic. Nike struggled with excess inventory in late 2022, leading to discounted sales. The company’s reliance on long-time favorites like Pegasus and Air Force Ones further stalled growth as consumers sought new styles. Nike's innovation, particularly in running, has been its hallmark. However, the focus on direct sales over innovation allowed competitors to capture market share. Now, Nike is reengaging with wholesale partners, anticipating slow orders as it scales new styles and repairs relationships. The brand is working to balance direct sales with innovative products to reclaim its market position.

An intriguing analysis from RetailDive delves into Nike's recent performance, revealing an interesting perspective. As per one interviewee, Nike's 2020 strategy, focused heavily on expanding its distribution channels, inadvertently led to a neglect of the core essence of their products. This oversight provided an opportunity for competitors to chip away at Nike's long-standing dominance in the industry. It seems that in pursuit of financial gains, many brands opt for single-brand distribution, potentially overestimating their own strengths while underestimating the competitive landscape. However, such a shift in focus away from the customer towards financial considerations can prove detrimental, resulting in lost ground to rivals in crucial retail spaces. Presently, brands like Hoka, On Running have effectively positioned themselves as fresh and appealing alternatives, thereby posing a notable challenge to Nike and other established players in the market.

Most people who know me personally know how into sneakers, footwear, and sporting gear I am, and I couldn't agree more with this sentiment. Watching Nike build goodwill within the sneaker community and market in the 2010s has been completely blown up by executive greed, market oversaturation, and an inability to internally coordinate marketing campaigns and product launches, resulting in an overproduction of shoes and gear with under-delivered storytelling or value highlights. The continued spending of that consumer goodwill, by forcing DTC, allowing online "influencers" to solely market products for them, and continuing to cater to demographics that show they are not interested in spending over 1k a month on gear, has turned off loyal customers and prospective new customers alike. New customers are overwhelmed by the number of products and the increasing frequency of discount sales, while loyal buyers are tapped out for spending as much as they did in the late '10s and early '20s. But that hasn't stopped Nike from doubling down on underwhelming product launches. I mean, the Jordan brand alone has released 4 Base Yellow Jordans 1's since 2019... who needs four pairs of Yellow Jordans 1's in a 40-month timespan? And that's not even mentioning all the other retro/performance models with the same oversaturation without a digestible story or marketing plan. The number of family & friends asking me about Asics, Hoka, and NB recommendations over the bloated and over-saturated Nike releases is astounding compared to 3-5 years ago. These companies have found a sweet spot (AKA the old Nike model!) of carefully curated collaborations, mainline releases that tell stories, easily accessible and understandable consumer marketing, etc. Nike will always have a secure spot as one of if not THE quintessential American Sportswear brand. Still, the executive hubris thinks they can continue coasting on past reputation and name value alone while churning out uninspired products, which is not a strategy that works to build the brand further or build community goodwill. As someone who loves the products and stories told by Nike and Jordan, I hope they can return to their ability to connect with consumers through retailers, storytelling, and thoughtful product launches that have room to breathe and create impact. #nike #sneakers #sneakerhead #dtc #shoes

🌟 Exclusive Insights Alert! Read about how a series of missteps led to Nike's share price hitting COVID lows and struggling against its younger competitors in this eye-opening article from Sky News. Gain valuable industry insights and stay ahead of the curve with this must-read piece. #Nike #StockMarket #IndustryInsights https://ift.tt/yVpiOZq

Nike reported Q4 results, and it was rough and rocky road. Speaking on a conference call to discuss Nike’s fourth-quarter results Thursday, CEO John Donahoe said the company saw strong gains in performance products, although this was more than offset by declines in Nike’s lifestyle segment. These declines, he added, had “a pronounced impact” on Nike’s digital results. “These factors when combined with increased macro uncertainty and worsening foreign exchange have caused us to reduce our guidance for FY2025,” he added. Analysts say that that Nike is entering a period of transition. “FY25 will be a transitional year with significantly softer performance than we anticipated and what NKE planned 3 months ago,” wrote Raymond James analyst Rick B. Patel, in a note released Friday. In particular, Raymond James cited weakness in lifestyle products, worsening global macro headwinds, and a foreign exchange hit. Nike has been the clear-cut leader for an extended period of time. Momentum from On, HOKA amongst others have created new levels of competition in addition to long term nemesis adidas and Under Armour. Nike has navigated the omni channel's fast evolving retail landscape as well as any company. Eager to see what's in store for the next phase of the company's future. #nike #retail #retailtrends #retailnews #cre #dtc #athleisure #sneakers https://lnkd.in/ejaRDmqK

Check out this insightful article on how Nike's share price has taken a hit due to a series of missteps, leading to tough competition from younger brands. The piece sheds light on the challenges Nike is facing amidst the COVID pandemic. It's a must-read for anyone in the business world. #Nike #BusinessNews #COVIDImpact https://ift.tt/yVpiOZq