Why Nike Is Struggling

Nike is the world’s largest sportwear brand but the company is on a mission to regain its stride after a challenging year. A series of poor earnings reports over the past year eventually wiped out $28 billion from the company’s market cap and in June, the company experienced its worst trading day ever as a publicly traded company. Nike has blamed its performance on everything from macro challenges to remote employees, but analysts say it was part of a years-long series of strategic errors. During an effort to focus on direct-to-consumer sales through digital channels, analysts say the company has started to lack innovation and ceded market share to newer rivals like Hoka and On Running. Nike is now dealing with an excess of inventory from major sales slowdowns as consumers turn to newer styles from other brands. Now, all eyes are the company’s new CEO, 32-year Nike veteran Elliott Hill, to turn the sportswear giant around. Watch the video above to learn more.

Chapters:
00:00 – Intro
01:54 – Disruptor
03:36 – Digital World
08:11 – What’s next?

Produced by - Merritt Enright
Edited by - Andrea Miller, Darren Geeter
Additional Reporting - Sara Eisen, Gabrielle Fonrouge
Supervising Producer - Jeniece Pettitt
Animation by - Jason Reginato

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Why Nike Is Struggling

[ShawnDeLaCruz]

Nike is struggling because the quality of their products are way too low relative to the price.

[life]

Nikes used to look cool, but they were expensive. Now they’re expensive and don’t even look cool.

[kineticstar]

Low effort garbage and overpriced items made in sweatshops is what is hurting nike.

[AzrafSahriarSami-bs]

The way I see it: Nike is loosing because people started to finally realize that "comfort" and "quality" is ultimately what we seek for in sneakers rather than just hype and name tags of some famous athletes.

[CedAdj]

Shoe culture has evolved. People are exploring new brands and styles, focusing more on value rather than just hype.

[linkingup]

Consumers are not stupid. You are selling $50 shoe at $200. No one is gonna buy that

[JamesMetsFan]

Nike is struggling because people are struggling. A $100-150 pair of shoes isn't high on the priority list.

[delmanpronto]

1. more competition
2. high prices
3. not durable

[LORDEDDY]

I had a feeling Nike was declining. I haven’t bought anything Nike in years

[Gotinks]

Blaming a decline on the fact employees are not in the office is wild af😂!

[jxpxm]

They followed resellers instead of listening to consumer.

[Maxnice]

$65 for a sweatshirt . 3 weeks later the same sweatshirt is at Nike outlet for $25

[GenesysStone]

It’s easy. They wanted to cut the middleman “footlocker” out of their sales. So they pulled a lot of product. Footlocker started promoting the other brands like New Balance, Aasics, Hoka more. People kept going to footlocker and with less Nike stuff around they bought the other brands.

Long story short, in one move Nike destroyed their own sales and boosted the profile and profits of brands the public wasn’t wearing.

[bobchandra]

The comments are a good example of how people refuse to invest time in finding out what's going on (watch the video), they didn't learn a thing about Nike's missteps with Direct-to-Consumer, didn't comprehend the initial success with DTC followed by a drop in sales. What they do have to offer is an oversimplification of why Nike stock is down. If the prices being too high were the problem, Nike would have collapsed a long time ago.

[StayFreshAF]

I can tell you what the issue is! It’s too expensive. Nike got way too expensive. 40 dollars for 1 running tee shirt is wild. I love Nike. But they for too too too expensive.

[PlayitagainVHS]

Want to bring Nike back ? 1. Lower the price . 2. Bring the quality back .3. Let the athlete get involved with there thoughts about the shoe quality like they did years ago.4. Straighten out ur relationship with footlocker and other companies. Good Luck nike.Like you once said.- Just do it !!!! 🙂✌🏻

[Cryptocracy_Now]

Because they sell $15 shoes for $300. Maybe start there.

[kota]

They turned into a fashion brand while brands like Hoka, Onn, and Brooks just made real shoes. I burn through running shoes and have never even consider Nike.

[Reality__st]

Quality & Style went down while Prices went up!

[timoooo]

Many people prefer to purchase shoes from brick and mortar stores to try the shoe first. Cutting off major retailers like that was not a smart move for sure