Footwear News’ Post

Nike valuation down $15bn after the global powerhouse confirmed it expects a 10% drop in Qtrly revenue.......... Nike is facing competition from new brands such as 'On' and 'Hoka'. Weakening demand is being felt internationally especially in places like China. Bosses are hoping that new products and marketing around the Paris games could reverse their fortunes. Are we starting to see the end of the global domination that Nike has had over recent years? What can Nike learn from innovative new brands such as 'On' and 'Hoka'? https://lnkd.in/ecV2Xa3i

Nope. Adidas and Nike are totally different companies that happen to compete in the same space. To say that Adidas has a revival playbook that Nike could use is like saying London can be Singapore-on-the-Thames. The only thing that is true is that Nike is somewhat in a slump because its business model that has lasted 30 years; with Jordan and more or less ending with the end of Tiger's sponsorship; has peaked. Adidas had just recovered from Yeezy debacle; but that is not even close to same scale of the issue confronting Nike. I said peaked. I did not say that Nike is in some terminal decline. "Both Nike and Adidas have become too reliant on products that burn bright and then fade, with nothing to take their place. In the case of Nike it has primarily relied on its retro sneakers led by the Air Jordan 1 to rally sales. Over the past decade, Adidas has cycled through the Stan Smith sneaker, the Yeezy collaboration with Ye and now its retro Terrace styles." Nope, Nike had a great 2022 Q3 to 2023 Q1. It bloody trumped Adidas, because of Ye's ... tweets. But then both brands fell back to similar levels of growth - so where is the lesson for Nike? The article's answer is new products that sell. No Shit Sherlock. "Both companies must also reconnect with a broader range of customers again. They prioritized their own online and physical stores in an effort to gain greater control and avoid markdowns." Sounds like they are mostly in the same boat, and no one has a better idea than the other.

Do you remember that we informed you some time ago that Nike decided to stop supplying several hundred of its EU distributors with its products? The sportswear giant sent a letter informing the affected distribution partners that the spring season of 2021 will be the last one of them working together as Nike terminates their contracts as of 31 March 2021. Well, Nike’s retail partners are making the headlines again now. Market analysts have noted a trend of increasing discounts on Nike products across various retail outlets. Indeed, twice as many Nike sneakers were offered at a discount in the early months of 2024 than in the same period of 2022. Analysts warn that such action could lead to Nike losing its reputation of exclusivity - an alarming possibility that Nike’s investors are already concerned about. Discover now all about Nike's issues with its distribution partnerships and find out how a faulty distribution network can damage your brand: https://lnkd.in/eGE2VZnJ #distribution #ecommerce

👋 Hey everyone, just came across this intriguing article from the Financial Times about Nike's challenges in the competitive sneaker market. It's a fascinating read that sheds light on the uphill battle Nike is facing and the strategies they're employing to stay ahead. Definitely worth a read if you're into business and strategy. #Nike #SneakerWars #BusinessStrategy https://ift.tt/oavKhtE

Despite surpassing Wall Street's expectations for third-quarter revenue and profits — largely thanks to holiday sales and price changes in North America — questions linger over Nike Inc's future writes Stake market analyst Megan Stals. The brand is losing ground in the US and other developed markets as contenders like Deckers-owned HOKA (DECK) and On Running (ONON) chip away at its dominance. Meanwhile, growth in the Chinese market is sluggish as the country's economic slowdown fails to rebound as expected, impacting one of the company's most widely touted growth opportunities.  While Nike unveiled a US$2 billion cost-cutting initiative in December, many investors are still not confident in the company’s prospects and its share price is down almost 15% year-to-date. So is this a chance to grab a quality stock at a discount, or is Nike’s dominance beginning to slip on a more permanent basis? More at #Proactive #ProactiveInvestors #Retail #Sportswear #SneakerFashion http://ow.ly/kXTh105ooUO

It is everywhere…in the supermarket, in hospitals, on the school run, in the queue at Pret A Manger, in the parking lot, the gym... ...it's on shoes, bags, clothing, billboards. The Nike Swoosh is literally everywhere. And whether you view it as an inspirational cry or a bullish command, the slogan "Just Do It” is part of modern life. They are a brand who understands brand distinction and strong execution, because of that Nike has seen its sales and profits increase during its third-quarter trading period. There’s a lesson there, be confident in your brand, execute it well and the results will speak for themselves. Oh and " Just do it ", that's definitely something we know about Ascensos #customersuccessexperts. #retail #brand #justdoit

Exploring Market Dynamics: The Resilience of Adidas and Nike Amidst Competitive Shifts The recent turbulence in the sportswear industry, particularly the unsettling performance of giants like Adidas and Nike, prompts a deeper examination of market dynamics through the lens of the mean reversion theory. As Adidas reports its first annual loss in over 30 years and Nike grapples with a significant decline in its stock value, questions arise about the resilience of these industry leaders in the face of evolving competition. The mean reversion theory posits that historical returns tend to revert to the long-term average over time. This theory implies that companies generating high economic returns will inevitably attract competitors willing to enter the market at a lower, albeit still attractive, return on investment. Consequently, aggregate industry returns are expected to converge toward the opportunity cost of capital. The present scenario unveils a critical juncture where the strength of Adidas and Nike's economic moats (Warren Buffett famously referred to a moat as a metaphorical protective barrier around a company's economic castle, representing sustainable competitive advantages that defend against competitors and preserve long-term profitability.) is put to the test. While these industry behemoths have historically enjoyed substantial market dominance and profitability, the emergence of competitors such as Skechers and Asics signals a potential shift in market dynamics. These contenders are vying for market share and challenging the incumbents' supremacy in the sportswear landscape. As Adidas and Nike navigate through this period of uncertainty, it becomes imperative to assess the durability of their economic moats. A robust economic moat, characterised by factors like brand recognition, distribution network, and customer loyalty, serves as a bulwark against competitive threats. Companies endowed with such formidable moats are better positioned to withstand market disruptions and maintain their market leadership. However, the current landscape underscores the need for vigilance and adaptability. If Adidas (Struggles in North America, exacerbated by high inventory levels and the termination of the Yeezy sneaker line partnership with Kanye West.) and Nike (Struggles with lowered revenue growth projections and cost-cutting measures.) fail to fortify their moats and address the shifting preferences of consumers, they risk ceding ground to competitors. In conclusion, while the present challenges facing Adidas and Nike may appear daunting, they also present an opportunity for introspection and strategic recalibration. #Sportswear #Adidas #Nike #MeanReversion #EconomicMoat #CompetitiveStrategy #MarketDynamics #Skechers #Asics

Do you remember that we at globaleyez GmbH informed you some time ago that Nike decided to stop supplying several hundred of its EU distributors with its products? The sportswear giant sent a letter informing the affected distribution partners that the spring season of 2021 will be the last one of them working together as Nike terminates their contracts as of 31 March 2021. Well, Nike’s retail partners are making the headlines again now. Market analysts have noted a trend of increasing discounts on Nike products across various retail outlets. Indeed, twice as many Nike sneakers were offered at a discount in the early months of 2024 than in the same period of 2022. Analysts warn that such action could lead to Nike losing its reputation of exclusivity - an alarming possibility that Nike’s investors are already concerned about. Discover now all about Nike's issues with its distribution partnerships and find out how a faulty distribution network can damage your brand: https://lnkd.in/ecNx3xMm #nike #retail #ecommerce #brandprotection

Shares of #American #sportswear giant #Nike slid more than 15 percent on Friday morning, after the company reported disappointing earnings and an even more disappointing outlook for the near future. The world’s largest maker of #performance and #lifestyle-oriented #athletic #footwear and #apparel reported revenue of $51.4 billion for the fiscal year ended May 31, which is basically unchanged from $51.2 billion the previous year. For a company that touts itself “a growth company” on its #investor website, zero percent growth is of course not good enough, but what was even more disconcerting for Nike’s #shareholders was its outlook for fiscal 2025. For the current fiscal year that ends May 31, 2025, Nike expects revenue to decline by the “mid-single-digits” with an even more pronounced #sales #decline in the first half of the year. Given Nike’s difficult past few months – the company’s #stock was down 13 percent this year even before Friday’s tumble, as it had been late to the #retro runner/ #sneaker trend embraced by companies like #NewBalance and #Adidas – #investors will be hard-pressed to see the positives in Thursday’s results. Despite the negative short-term outlook, the company’s #leadership tried to exude confidence. "This summer we will cut through the clutter to create powerful energy for the Nike brand," #JohnDonahoe, the company’s CEO said looking ahead at the #ParisOlympics. “In the end, we’re taking our challenges head-on, and we’re regaining our edge. Thanks to the heart and hustle of our global team, we are aggressively asserting the future of Nike. With passion, clarity and grit, we’re driving this business forward. We’re excited about the opportunity in front of us, and we’re eager to prove what Nike can do.” As our chart shows, there have been very few setbacks in Nike’s impressive growth story. Since its founding days in the early 1970s until today, the company has never seen two consecutive years of #decliningsales. Time will tell if that streaks continues. https://lnkd.in/gaTEZk-h