Nike

Can They Still Do It?

Abstract

Over the years, Nike has established itself as a leader in the athletic footwear and apparel brand industry. However, as of late, the company has faced significant challenges, especially with its heavy reliance on direct-to-consumer (DTC) sales. While initially successful, this strategy has strained relationships with key wholesale partners like Macy's and Foot Locker, reducing Nike's presence in retail stores. This has allowed competitors such as On, Hoka and Adidas to be almost on par with Nike in certain aspects. The newly appointed CEO Elliot Hill is trying to address the shortcomings of Nike by focusing on innovation, wholesale relationships, and R&D. Therefore, in the long run, I believe that the company is positioned for a turnaround making Nike stock an attractive option for a gradual investment.