Nike's new CEO, Matthew Hill, is facing a major challenge as the company grapples with a sales decline. Analysts predict a significant drop in sales and profits, attributed to Nike's efforts to revamp its product assortment by scaling back on popular but overexposed franchises. This strategy, while aimed at restoring the brand's coolness, has led to short-term pressure on sales, impacting retailers like Foot Locker. Hill's task extends beyond product strategy to reviving Nike's innovation, strengthening relationships with wholesalers, and fostering a positive company culture after recent layoffs.
Here's what analysts are expecting from the world's largest sneaker company, according to consensus estimates from LSEG:Analysts are expecting sales to drop more than 9% from the year-ago period and profits to plunge by about 38%.
The dismal outlook comes as Nike works to turn around its business and fix its product assortment by pulling back on three of its key franchises: Air Force 1s, Dunks and Air Jordan 1s. Those stylesunder former CEO John Donahoe, but then became so commonplace that they lost their cool factor. Now Nike is trying to cut back supply.
Nike has warned that strategy will pressure sales in the short term. But it has also affected Foot Locker, which missed Wall Street's estimates on the top and bottom lines in its third-quarter report Dec. 4 in part because of soft demand for Nike products, its CEO Mary Dillon told CNBC at the time. Foot Locker's dismal quarter was a warning sign for Nike and a clue that investors may need to be patient as they wait for the sneaker giant to turn its business around. When Nike reports earnings Thursday, Hill will have been in the new role for just over two months, and it's going to take time to see the effects of strategy changes.Hill has his work cut out for him beyond fixing Nike's product assortment.
Since taking over, he has scored a few wins. The National Football League announced Dec. 11 that it had
Nike CEO Sales Decline Product Strategy Innovation
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Nike Faces Challenges as Sales Dip and Investors Await TurnaroundNike is navigating a period of decline in sales and profits as it refocuses its product strategy. The company aims to revitalize its image by reducing supply of popular but overexposed styles like Air Force 1s, Dunks, and Air Jordan 1s. This move is expected to impact short-term sales but could lead to long-term growth. Investors are closely watching Nike's progress under new leadership.
Read more »
Nike Faces Dim Outlook as Sales Drop and Profit PlungeNike is expected to report declining sales and profits as the company works to revamp its product lineup and regain its cool factor. Analysts predict a significant drop in sales and a substantial decline in profits. The company's strategy to reduce supply for popular franchises like Air Force 1s, Dunks, and Air Jordan 1s is expected to have a short-term impact on sales.
Read more »
Nike Faces Headwinds as It Restructures BusinessNike is grappling with challenges as it attempts to revitalize its brand and product offerings. Analysts predict a decline in sales and profits, and the company's recent strategy of reducing supply for popular products like Air Force 1s, Dunks, and Air Jordan 1s has impacted retailers like Foot Locker.
Read more »
Nike Faces Earnings Slump as It Restructures Product LinesAnalysts predict a significant drop in Nike's earnings and revenue for the upcoming quarter. The company is implementing a strategy to revamp its product assortment by reducing supply for popular franchises like Air Force 1s, Dunks, and Air Jordan 1s. This move aims to recapture the exclusivity and desirability of these styles.
Read more »
Tulsi Gabbard, Trump’s pick for intel chief, faces questions on Capitol Hill amid Syria falloutHer visit to Syria to meet with then-President Bashar Assad around the time of Trump’s first inauguration during the country’s bloody civil war stunned the Washington national security establishmen…
Read more »
Tulsi Gabbard, Trump's pick for intel chief, faces questions on Capitol Hill amid Syria falloutPresident-elect Donald Trump’s pick for intelligence chief, Tulsi Gabbard, is making her case on Capitol Hill.
Read more »