Nike is reforming its online marketplace, Nike Digital, by moving to a full-price model and cutting back on promotional discounts. Despite a 10% drop in revenue for its direct sales, CEO Elliott Hill emphasized this strategic pivot aiming for long-term stabilization despite expected short-term declines in digital traffic. Nike reported a $11.3 billion revenue for Q3, slightly exceeding analysts’ expectations. The company continues to invest heavily in marketing, battling competition from brands like Adidas and Hoka to regain market presence in lifestyle and running segments.
Nike is working to reposition its online marketplace, Nike Digital, to a 'full-price business,' which indicates a significant shift in its sales strategy.
CFO Matthew Friend stated that the company is reducing promotional days and markdown rates, with expectations of a decline in digital traffic due to this strategy.
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