The issue for Nike is the market is very competitive now with nearly every shoe brand having a great range of shoes. Now that the Chinese brands are also gathering momentum it means Nike’s massive market share has taken the biggest hit. Unfortunately for Nike they will never get that market share back. It’s just too competitive now. The share price represents this. There is just no more growth available and the market has recognized this and invested into other stocks that provide more upside. that’s just how the stock market works.
Plenty of big companies face the issue of tapped out markets.
The solution is to define yourself as something bigger, and run brands you purchase through your supply/marketing/sales channels.
Companies like Procter, Kraft, Coke, Pepsi, Colgate, Unilever, Benckiser do this all the time.
Protect your core business and get growth with acquired brands and new country markets.
The reality is the difference between all of these products is way over blown. Competing brands are literally made side by side in the same factory. Nike doesn't make anything, they just simply hire factories in Asia to build their products. In that sense it is a company about nothing but ideas. They previously had great advertising and could sell a story. The creative aspects and story telling seems to have noticeably dropped off. Let's not pretend that any of these products are that good. The VaporFly was a technology leap, but nothing else has been. They simply got disconnected from the public's attention via less compelling advertising and pulling shoes from stores, allowing others to step in. But, the bar is really, really low. Brooks is bland and uninspiring to the point one wonders how it sells anything. Hoka is for the ultra and geriatric crowd, while ON is faddish and Adidas makes the same products they did in the 1980's. NB has had an interesting street style revival, but their advertising is mid. Thus, there is ample opportunity for a Nike domestic revival. The real obstacle is probably the Chinese brands. The Chinese population is increasingly patriotic, and are turning their backs on established western brands in favor of Chinese innovation. Tesla has been down this road before. Without increases in China, Nike stock is likely to hover where it is.
The reality is the difference between all of these products is way over blown.
And the other reality is all shoe sellers colluded to push the general running shoe prices up about $50 above what they were for a long time, in the last few years. While the old price was already a little too steep. Hobby joggers like myself started balking at buying new shoes even $20-30 off "full price," especially since they were getting mid to bad reviews on durability and fit with each new model.
And now regular people have less and less money to spend on stuff like that extra pair of shoes for one activity. If a shoe gets put on sale online, with that $50 knocked off, they're swept up much more quickly than they used to be, even in crappy colors like pink and vomit beige. One has to game it harder. The current price point for a halfway decent running shoe is a longterm problem moving forward, even if Tarifflandia doesn't last much longer. (Elites and athletes who get free shoes for a time aside.)
All I Want is For NIKE CEO Elliott Hill To Pay at least 100k to the top 50 Available Athletes ( in each Championship Event 100, 200, 400, 800, 1500, 5000, 10000, Steeple, 110 Hurdles, 400 Hurdles Marathon and Field Events. So they can train and not worry about any distractions like Jobs that could have a negative impact on their performance.
All I Want is For NIKE CEO Elliott Hill To Pay at least 100k to the top 50 Available Athletes ( in each Championship Event 100, 200, 400, 800, 1500, 5000, 10000, Steeple, 110 Hurdles, 400 Hurdles Marathon and Field Events. So they can train and not worry about any distractions like Jobs that could have a negative impact on their performance.
Why is it Nike’s job to prop up sports that nobody cares about?
Nike has 100s of $Billions in the bank. Nike has consolidated it Design, Marketing, Technology back in L.A. where it all started back in the day. New York has a big role too. It was prompted for the LA2028 games. Nike will continue to dominate.
I know many people who have stopped buying Nike products because of their politics. Not sure what impact it has had on Nike,s revenue.
I check out the Nike app fairly regularly. Seems like the problem is they err on the side of too much variety. They have 1 million different sneaker models, and I’m always asking myself who buys this stuff? Apparently no one.