Nike is still struggling.
The iconic shoe company just reported a shocking sales collapse that has fans worried about the store’s future.
It’s a bleak update in a saga that has seen arguably America’s most legendary athletic fashion brand struggle to put popular products on its shelves.
‘To me it seems that the only thing Nike has going for them is brand image to justify outrageous prices,’ one customer recently complained on Reddit.
‘$200 for a sneaker? Yeah right.’
Nike’s sales dropped 9 percent, a staggering $1.16 billion fall in the value of shoes, tracksuits, and t-shirts.
Executives said the slowdown was likely because Chinese consumers are cutting back on spending. There are several reasons for Nike’s struggles.
For years, conservatives have criticized Nike for its partnerships with political activists and athletes, such as Colin Kaepernick, who protested during the national anthem, viewing it as a shift toward ‘woke’ culture.
Nike’s stores reported slowing sales in the past year
The company’s stance on social issues and commitment to diversity and inclusion have led some to accuse it of prioritizing activism over traditional American values.
In particular, conservatives spoke out against the company’s all-female Super Bowl ad.
Caitlin Clark, the dominant WNBA player, was a central figure in the ad campaign.
And now, Nike is also facing stiff competition from rising competitors in the US.
Hoka, Brooks, and Saucony are all gaining sales in the athletic sneaker industry after spending millions of dollars on branding deals with running clubs and community events.
These brands are more nimble, often offering trendy designs at lower price points and delivering a more eco-conscious message.
Nike, by contrast, has struggled with inventory numbers in its stores.
The company rarely offers major discounts on its top-end shoes, including its iconic Air Jordans brand.
Caitlin Clark was the central figure in a Nike ad campaign that conservatives spoke out against
Nike has a new CEO in Elliott Hill
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Sales fell the most in China, one of its largest markets., where they fell 17 percent.
Before the sales dip, Nike was already in the middle of a revolutionary change, headed by new CEO, Elliott Hill.
Hill, who took over the top spot in the company in late 2024, has warned that the company needs to endure a rocky period before righting the ship.
During the earnings call, Hill said he expects sales to continue to dip in the next quarter.
He also explicitly said that tariff policies from the Trump White House will hurt Nike’s bottom line.
Shares for Nike fell on the day, as investors brought the stock price down 5.4 percent.
Its the lowest the stock has sunk since 2020 when the Wall Street entered a recession during the pandemic.