What's gone wrong at Nike? How the world's sportswear giant lost its mojo
Several self-inflicted mistakes have cost the biggest sportswear brand on the planet in recent years.
For several years, Nike, the global leader in sportswear, has been facing challenges. Sales have declined, customers are leaving, and competitors are gaining ground. The company, once a disruptor, now finds itself in a difficult turnaround plan led by veteran Elliott Hill. While initial results show some signs of success, the pace of change is slower than expected.
The loss of football star Kylian Mbappé to Swiss rival On has raised concerns about Nike's ability to maintain its position among elite athletes and their fans. These missteps have led to a significant drop in stock value, with Nike losing over $750 billion in market value over five years and being removed from the S&P 100 index.
Analysts point to strategic errors, such as removing sports retailers and prioritizing limited-edition items, as well as focusing research and development on digital operations instead of new products. These changes may have made Nike less appealing to consumers. Despite its current challenges, Nike remains a mega brand popular worldwide, and veteran analyst Matt Powell believes the company can bounce back, provided it focuses on innovation and stops shutting it down.
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