Nike, the sportswear giant, is facing significant challenges in the market, leading to the announcement of 2% job cuts. The brand has lost retail shelf space to newer brands like Hoka and On Holding, whose running shoes have resonated with customers due to their catchy and innovative styles. This shift in consumer preference is compounded by higher rental and interest rates, causing customers to cut back on spending on high-priced goods. Additionally, Nike's performance has been declining, with the company's stock down approximately 20% year-to-date (YTD). This decline is part of a broader trend affecting legacy brands, as they struggle to grow revenue and earnings due to their size. Nike's situation reflects a larger issue within the sportswear industry, as Americans' demand for sneakers and sportswear wanes, and British newcomer JD Sports Fashion sees an opportunity to enter the market. Furthermore, the mystique of iconic products like the Air Jordan sneaker is diminishing, signaling a potential shift in the industry's dynamics.
The mystique of the Air Jordan sneaker has begun to dim. @andersen on the brand’s rise and fall, and rise and fall again: https://t.co/kTAuVphdWa
Legacy Brands Are (Still) In Decline: Nike is down ~20% YTD Like Apple, Nike is so large it can’t grow revenue and earnings anymore. So, it is transitioning from a Growth to a Value stock (something I have written about extensively and am paranoid about). I love my Nike… https://t.co/v8LmbwxzCg
Americans’ waning demand for sneakers and sportswear has major players in a rut. British newcomer JD Sports Fashion sees this as the moment to pounce. https://t.co/B3ZNxJdW0B https://t.co/B3ZNxJdW0B
Nike has lost retail shelf space to newer brands like Hoka and On Holding as their running shoes resonate with customers looking for catchy and innovative styles, leading to about 2% job cuts https://t.co/rDeSjc0awl https://t.co/tE1O1YbeG8
WATCH: Higher rental and interest rates have led customers to cut back spending on high-priced goods, leading sportswear giant Nike to announce 2% job cuts https://t.co/2YmaHqXT24 https://t.co/COaDdFezeT
WATCH: Nike has lost retail shelf space to newer brands like Hoka and On Holding as their running shoes resonate with customers looking for catchy and innovative styles, leading to about 2% job cuts https://t.co/2YmaHqXT24 https://t.co/NUj1TrQjyF