Nike’s new CEO, Elliott Hill, has outlined three key areas of focus to revamp the struggling sports giant. Two months into his tenure, Hill is working hard to address mistakes made in recent years. The company’s lackluster sales and direct-to-consumer push have led to a 36% decline in its stock value over the past year.
Hill cited three main issues: becoming “too promotional” with excessive discounts, losing its focus on sports and athletes, and souring relationships with marketplace retailers. To correct these mistakes, Nike will concentrate on five core categories: running, basketball, training, football, and sportswear. The company aims to rein in promotions during off-seasons, instead focusing them during traditional retail moments.
Hill also emphasized the importance of leveraging athlete insights to drive innovation and design. Analysts have previously criticized Nike’s stagnation in product development, with some blaming the company for relying too heavily on retro styles. Hill plans to build back trust with key wholesale partners, which had felt abandoned by Nike’s recent changes.
Wholesale revenue declined 3% in the last quarter, but analysts saw a glimmer of hope with better-than-expected results. The partnership between Nike and Foot Locker has also taken a positive turn, with both companies expanding their collaboration to deepen their relationship.
Source: https://www.businessinsider.com/nike-new-ceo-elliott-hill-change-sport-sales-wholesalers-turnaround-2024-12