๐ ๐ค๐๐ฎ๐ฟ๐๐ฒ๐ฟ๐น๐ ๐ฅ๐ฒ๐๐๐น๐๐
Nikeโs sales dropped by -๐ด% ๐๐ผ $๐ญ๐ฎ.๐ฐ ๐ฏ๐ถ๐น๐น๐ถ๐ผ๐ป this quarter, but the dip was slightly better than analystsโ expected 9% decline. Gross margins also fell, but they beat forecasts as Nike leaned on heavy discounting.
๐ ๐ฅ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ง๐ฟ๐ฒ๐ป๐ฑ๐ (๐ณ๐ฟ๐ผ๐บ ๐ฎ๐ฌ๐ญ๐ต โ ๐ฎ๐ฌ๐ฎ๐ณ)
โ Nikeโs revenue peaked in 2024 at $๐ฑ๐ฑ๐ (+7.5%), showcasing strong growth during the pandemic.
โ A sharp decline of -๐ญ๐ฏ.๐ฒ% is forecasted in 2025, with revenues dropping to $๐ฐ๐ณ.๐ฑ๐.
โ Growth is expected to stabilize by 2027, reaching $52.6B. (according to Marketscreener.com)
๐งโ๐ผ ๐ก๐ฒ๐ ๐๐ฒ๐ฎ๐ฑ๐ฒ๐ฟ๐๐ต๐ถ๐ฝ, ๐ก๐ฒ๐ ๐ฃ๐ฟ๐ถ๐ผ๐ฟ๐ถ๐๐ถ๐ฒ๐
โ Under new CEO Elliott Hill, Nike is shifting strategies to regain momentum:
โ Back to Sport: Refocusing on athletes and sports, aligning teams by sport instead of consumer segments.
โ Fixing the Product Mix: Scaling back on overused styles like Air Force 1 and Dunks to create room for fresh designs.
โ Rebuilding Relationships: Rebalancing ๐๐ฎ๐ ๐๐ฎ๐น๐ฒ๐ ๐๐. ๐๐ต๐ผ๐น๐ฒ๐๐ฎ๐น๐ฒ, empowering partners with premium inventory and local support.
โ Full-Price Focus: Phasing out discounts to emphasize value and protect brand equity.
๐๏ธ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด ๐ฅ๐ฒ๐ฏ๐ผ๐ผ๐
Nike aims to shift spending from performance-driven clicks to emotional brand storytelling, with athletes playing a central role in campaigns.
Elliott Hill acknowledges the tough road ahead but remains committed: โ๐ง๐ต๐ถ๐ ๐ถ๐๐ปโ๐ ๐ด๐ผ๐ถ๐ป๐ด ๐๐ผ ๐ฏ๐ฒ ๐ฒ๐ฎ๐๐, ๐ฏ๐๐ ๐๐ฒโ๐ฟ๐ฒ ๐ฟ๐ฒ๐ฎ๐ฑ๐ ๐ณ๐ผ๐ฟ ๐๐ต๐ฒ ๐ฐ๐ต๐ฎ๐น๐น๐ฒ๐ป๐ด๐ฒ.โ
Whatโs your take on Nikeโs next steps? Can they bounce back stronger?