Facing an 8% drop in revenue for Q2 FY25 and stiff competition from brands like Hoka and On, Nike is refocusing on performance wear to reclaim its edge in the sports apparel market. Analysts advocate a strategy reminiscent of Nike's successful comeback from 2015 to 2018, which included increased product launches and re-elevating the Jordan brand. CFO Matthew Friend acknowledges that running has been a tough challenge, trailing competitors in shoe launches, and highlights Nike's need to innovate rapidly to stay relevant.
Analysts suggest Nike should revisit its successful strategies from 2015-2018 to recover its market share in performance sports apparel.
Despite significant competition from brands like Hoka and On, Nike plans to reclaim its edge by refocusing on performance wear, particularly in running.
BMO analyst Simeon Siegel emphasizes that strategies such as cleaning up inventory and increasing product launches were critical for Nike's previous success against Adidas.
Nike's CFO Matthew Friend acknowledges the tough competition in the running sector, noting that Hoka is leading the charge with ultra-cushioned footwear.
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