What's wrong with Nike?
- Thread starter HToady
- Start date
businessofsport
Guest
Yes Elliott Hill. Great guy and the global Nike team has huge respect for him, rebuilding their culture (which they did not have for his predecessor).
I bought in when EH put Alexandre Arnault on the board this past week (the LVMH heir who turned around Tiffany). Miami also announced this past week that it's going back to Nike, so Nike/Jordan now has about 60% of the big-conference programs. And Donati is the one who brought Nike to South Carolina this season through his EH relationship.
Nike screwed up in 2020 under Donahoe. He cut off retail stores globally, either out of all stock or just gave them the crap SKUs, went all-in on selling direct to consumer, and quit making anything new people wanted. On and Hoka took the shelf space they left behind.
That's why Hill's back out of retirement in late 2024 to clean it up.
Stock's down about 80% from 2021 and they got bounced from the S&P 100. Still in the S&P 500 though. There was hope Berkshire would sweep in and take a long-term position / take private.
Announced plan now is to get back in stores (but they wont regain the space they had before), double down on athletes and sports instead of trends and casual, and make great shoes again. My Nike's have peeling tread weeks in... lots to fix.
It was bad business decisions and a lack of new products. Adidas, On and Hoka ate their lunch.
I'm long, invested and will forget about it. Arnault didn't come in without taking a position. As a director he has to disclose every share. Don't expect him to load up though. His sister Delphine has sat on Ferrari's board for 10 years without the family ever buying big.
Alexandre is a marathoner and brings LVMH know-how on brand building, marketing and digital, which is where Nike screwed up. Ackman and otherr fund guys praised Hill for landing him. He'll advise, open doors, to help Hill.
Last edited:
The TCU Football Jerk
Active Member
Their shoes have always sucked. I've never been a fan of their footwear. They got away with their image for a long time. That ship has sailed though. And make no mistake about it, wokeness cost them plenty too.
TxFrog1999
The Man Behind The Curtain
I really had no clue about athletic footwear until my son started running cross country two years ago. The first set of shoes we bought him were Hoka and he now runs with Brooks, but I was shocked to find that absolutely no one runs with Nike unless it's the first couple of meets and the student can't afford "proper" running shoes forcing them to use what they wear everyday.
Nike has a LONG road ahead.
Nike has a LONG road ahead.
froginmn
Fan Club
Delisted means removed from an exchange; it's not accurate to say they were delisted. They fell off of the S&P list of the top 100 largest companies on that exchange.
Michael Milton's Jaw
Active Member
Nike came out with the very first air sole shoe in 1979, the Tailwind. Revolutionary running shoe, with a tremendous amount of cushioning but Phil Knight did not like that much cushion so he spent the next 40 years using a bunch of gimmicks and kept reducing the cushioning. Along comes Hoka and everyone else with maximum cushioning running shoes and they crush Knight/ Nike Running line. Nike tried to bring back the exact 1979 Tailwind shoes as the Tailwind OG In 2019. It was great to get a pair but it still did not feel as good as 1979. Nike had the lead and gave it all away.
One Frog Nation
Active Member
Her view is that Nike spent the last few decades completely ignoring females. As well as some of the things listed above.
nypost.com
Nike caused its own downfall â by breaking the cardinal rule of capitalism
It would be easy and pat to dismiss Nike’s debacle as the business world’s latest example of “go woke, go broke.” But the truth is more complicated.
nypost.com
jack the frog
KMA
Love the Brooks. I just bought a pair of Ghost 18’s. Brooks has a combination of probably 25 model/color combos that are more attractive than anything Nike offers.
NKE tried and failed to sustain an iconic brand ecosystem. Lousy marketing and overrated products were the main culprit. The balance sheet looks ok, and has actually improved over the last 18 months, but would you invest if the company was named Jones shoes? That’s kind of what you get as the brand becomes less relevant every year.
Sweat Equity
Tier 1
Important distinction.
Big Frog II
Active Member
Nike coasted way too long. It is going to take some time to get them tuned around. A lot of brands have swooped in while Nike was coasting. Nike is doing some good things now, but it is going to take some time to rebuild their brand.
Frog Attack II
Active Member
I see what you did there .. "...lot of brands have swooped in while Nike was coasting...'
Well played
Well played
TopFrog
Lifelong Frog
GO WOKE, GO BROKE: Nike loses 78% of its value after five years of free fall
https://voz.us/en/society/260907/38...ics-attribute-to-woke-marketing-strategy.html
Nike is facing one of the biggest stock market crises in its recent history. The company's stock has lost about 78% of its value since its...
https://voz.us/en/society/260907/38...ics-attribute-to-woke-marketing-strategy.html
Nike is facing one of the biggest stock market crises in its recent history. The company's stock has lost about 78% of its value since its...
froginmn
Fan Club
They swooped in while Nike was swooshing.
Paint It Purple
Active Member
Haven't bought nike since this. Won't purchase TCU gear with a swoosh.
ShreveFrog
Full Member
Runners have long regarded Nike as a fashion shoe. I boycotted Nike for a while. But they haven't pissed me off in about a decade or so. So I've bought the TCU Nike shoes (white, purple and black models) for when I'm reppin' the Frogs. I have several pairs of Brooks and they are great for my walking and outdoor work and play. But the BEST shoes I have are these Adidas Supernova Ease. Extremely cushiony/comfy and look athletic.
Attachments
Last edited:
Mean Purple
Active Member
This can't be cited enough. The thought that in store was so much less needed was a foolish concept. Get it in their hand is a successful sales strategy. Online shopping is loaded with noise. Loss of capture of the impulse buys too.
Mean Purple
Active Member
Back in the day, if someone had narrow width feet, the Nike running shoes had a chance, due to how they were cut on the instep. But NB and Brooks made sure to keep narrow widths and own that game.
And, as you mentioned, the more experienced a runner becomes, the more likely they move on to the focused brand.
The latest trend is cross trainers becoming too specialized.
Michael Milton's Jaw
Active Member
Amazing that a shoe company started by a runner and his coach could lose the running public.
