Nike CEO: We Forgot About Sports!

Nike's boss, Elliott Hill, recently admitted that the sports giant has lost its focus on sports, much to the surprise of investors. After a brief surge in shares, the company's stock took a nosedive when Hill forecasted a double-digit drop in revenue for the coming quarter. Hill, who took over in October, is now on a mission to revive interest in Nike by focusing on sports and selling more items at higher prices. Hill believes Nike has become too promotional, which hurts the brand and the market. He plans to fix this by limiting discounts and promotions. Nike has been struggling to keep up with competitors who offer more comfortable shoes. To stay ahead, Nike is launching new products and versions of popular franchises like Air Max 95 and Jordans. Retailers are hopeful that Hill will strengthen Nike's partnerships, which have weakened since the company shifted to direct sales in 2020. Stores like Foot Locker, which still rely heavily on Nike, are looking forward to working with Hill. Nike's recent quarterly profit beat expectations, but overall, the company's shares have dropped almost 30% this year.