Nike's Strategic Shift: Addressing Revenue Flatline and Market Share Loss
Nike's Q3 revenues remained flat at $12.4 billion, prompting CEO John Donahoe to acknowledge the brand's underperformance and announce a shift back to wholesale and product innovation. The company's consumer direct revenues were up slightly at $5.4 billion, while digital sales fell 3%, leading to a 3% growth in wholesale to $6.6 billion. This strategy pivot follows a $2 billion cost-savings plan announced in December and aims to address concerns about the brand's lack of innovation and its focus on where products are sold rather than what is being sold.