Nike warns of guidance cut as it posts slowest non-pandemic sales gain in 14 years
What specific actions is Nike taking to enhance competitiveness?
Nike is taking several actions to enhance competitiveness, including repositioning the brand to be more competitive, driving better balance across its portfolio, and focusing on cost-cutting efforts. The company is also reducing the number of products it offers in favor of new innovations and betting on the success of upcoming events like the 2024 Paris Olympics. Additionally, Nike is investing in growth areas such as running, the women's category, and the Jordan brand.
What factors led to Nike's revenue miss in Q4?
Nike's revenue miss in Q4 was attributed to a slowdown in lifestyle sales, a higher share of lifestyle products impacting online sales in April and May, and declining traffic in China due to macro conditions. Additionally, the company's shift in direct-sales strategy and a focus on building out that channel may have taken attention away from innovation, leading to reduced product appeal.
How did Nike's annual sales growth rate compare to previous years?
Nike's annual sales growth rate for fiscal 2024 was flat compared to the prior year, marking its slowest pace of growth since 2010, excluding the Covid-19 pandemic. The company's revenue growth has been slowing down, and it has faced challenges in recent times, including increased competition and a shift in consumer preferences.