Nike has been investing heavily in its running shoe catalog, aiming to sharpen its brand image and drive growth. The company’s efforts stem from challenges it has faced with its limited-edition sneaker releases, as reported by the Wall Street Journal. Additionally, Nike has cut ties with retail partners like DSW and Urban Outfitters in favor of selling through its SNKRS app.
Despite these efforts, Nike’s sales remained flat in the first quarter of 2024, while its shares have declined by 24% in the past year. In response, Nike’s Chief Executive Officer John Donahoe acknowledged the company’s loss of focus and the need for enhanced innovation. He emphasizes the importance of investing in retail as consumers return to brick-and-mortar stores post-pandemic.
Nike’s shift in strategy is influenced by competition from other brands like On, Hoka, and Lululemon, which have eaten into Nike’s market share. Nike plans to prioritize its most important franchises for long-term health, resulting in a period of transition for its product portfolio. Donahoe highlights the company’s focus on its Air technology, which has seen advancements in performance innovation. Nike aims to integrate Air across its business, including its lifestyle portfolio, to enhance how athletes and everyday runners move.
