Stock price big dump 23%! What happened to Nike?

Nike stock price big dump 23% to $76, returning to the lowest point during the epidemic. Investors had high hopes for new CEO Elliott Hill, hoping he could turn around the declining stock price. Despite Nike's positive financial performance this year, the aging of the brand and the rapid changes in the overall environment have made investors lose confidence in this once world's top sports brand.

Performance leads the way, brand image cannot find a new positioning

What do you think of when you think of Nike? A symbol like a checkmark, or 'Just Do It'? Despite 'Just Do It' becoming a phrase that many people use to joke around, it can be interpreted as either promoting romance action movies or leaving a deep impression.

Nike's newly appointed CEO, Elliott Hill, has been with Nike since 1988. He started as an intern and has held nineteen different positions. He retired with honor in 2020 and was reassigned as CEO by Nike in 2024. The return of the veteran has indeed improved Nike's performance. The fourth-quarter financial report released by Nike this year shows a slight growth compared to last year, from $51.2 billion to $51.4 billion. However, this small growth obviously did not impress investors.

Nike has spent a lot of money on advertising in the past, with endorsers including basketball superstar Jordan, tennis champion Federer, and other super athletes. Nike actively operates stores around the world, with advertisements dominating its retail stores, overshadowing all other sports brands.

However, Nothing sad than being a 老品牌,facing the rising performance and brand image of the up-and-coming Hoka and On Running, as well as the European classic brand Adidas, how should Nike position its future brand? The newly appointed CEO, Elliott Hill, seems to have many blind spots.

Even old white man Trump has to pull in the young white man Pence as his deputy, to avoid being ridiculed as a demented old man like Biden who falls asleep. But Nike seems to have misunderstood the trend of the world, especially when even Federer's archenemy Nadal, who is ten years younger, has retired, Nike still can't grasp the point.

Affected Nike Stories

Nike spent a lot of time letting advertising agencies write stories that connect the brand to the dress of 'successful athletes', emphasizing the 'winning' victory, and pushing stories about disabled athletes and pregnant women who are six months pregnant and must exercise diligently. It looks sentimental and exaggerated, and young consumers are no longer interested in this kind of inspirational story. Nike's story no longer appeals to the new generation of consumers.

Brand aging enters the death phase

BMO market analysts believe that Nike cannot promote its official website, and they do not believe that managers can use online Zoom meetings to grow their performance. They use the sales figures of physical stores as indicators of KPI, which are becoming increasingly distant from consumers.

Even though 60% of Nike's performance comes from retail stores, many stores like Footlucker, a discount shoe store, spoil consumers' appetites, compete on price, and profits may not grow. Nike has long been obedient to retail stores and cannot keep up with the changes in online consumption.

The website's direct sales are not performing well, and retail stores have no profit margin. Nike's repeated changes in business strategies have resulted in poor performance for both physical retail stores and online direct sales. Students who have studied advertising know that every brand will age, especially sportswear brands that need vitality to drive brand image. If Nike does not reconsider its brand positioning and business strategies, it may become a brand forgotten by young people and fade into history along with the older generation.

This article stock price big dump 23% ! What happened to Nike? First appeared on Chain News ABMedia.

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