Focusing on Running Shoes
Nike has spent a great deal of time looking to innovate, but now it wants to get back to the basics by focusing on its running shoe catalog.
– Innovation
– Back to basics
– Running shoe catalog
SpaceX Starlink IPO
– Possible spinoff for huge IPO.
> Exciting potential in the near future.
Running Brand Image
subdued success of limited-edition franchise sneaker releases
– The company’s efforts to sharpen running brand image.
– Due to subdued success of limited-edition franchise sneaker releases.
Company Strategy
– cut ties with DSW and Urban Outfitters
– selling on SNKRS app
– sales in first quarter of 2024 were flat
– Nike shares down 24%
Boost Innovation Pipeline
John Donahoe, Nike’s chief executive officer, told the Journal that the company lost its “sharp edge” and needed to boost its “disruptive innovation pipeline.” He acknowledged that with people returning to brick-and-mortar stores following the pandemic, Nike needed to invest more in retail.
– Invest in retail.
Nike’s Transition
– competition from other brands
– On, Hoka, and Lululemon
– focusing on diehard and daily runners
Long-Term Franchise Management
Donahoe told investors during the company’s earnings call in March that Nike plans to carefully manage its “most important franchises for the long-term health.” And as a result, it means that Nike’s “product portfolio will go through a period of transition over the coming quarters,” he added.
– Careful Management of Franchises
– Transition in Product Portfolio
Company’s Focus
– Air cushioning platform enhancement.
– Utilized in Nike’s Olympic kits.
According to Donahoe, the company plans to focus on its cushioning platform Air, with the goal to enhance how athletes and everyday runners move. Air’s technology has already been deployed across Nike’s Olympic kits.
Running Shoes
– performance innovation
– Air across our business
– our lifestyle portfolio
