Our key conclusion is there will be no quick rebound for Nike’s earnings,” Sole said in a research note on Friday. “We believe Nike is embarking on what will be a multiyear reset of its business in order to return to healthy top-line growth rates.”
https://www.marketwatch.com/story/nike-entering-a-transitional-year-as-it-wrestles-consumer-demand-challenges-say-analysts-08c2d387
3 replies (most recent on top)
Rebound, return, rebuild… it all starts with the missing ingredient - TRUST. Teams can do amazing things when trusted, when players trust each other, and they believe in what they are doing. That their opinions matter, that we’re all working towards the same goal, etc. Has been too many scandals, too many fiefdom builders, WAY too much wasteful overhead/admin, and those of us that are working our tails off to keep the business running see way too much time/effort/resources going to stuff going in the opposite direction of being an efficient business. Is stuff we used to do that took 15 seconds that now takes months (approval layers, tasks handed down between 10-15 teams … then ends up being done by an offshore team that sc--ws it up, and wasn’t delivered on time). This is for simple things like updating a row in a table. We are lost … it all starts with re-establishing TRUST … but also holding people/teams accountable for mistakes and bad decisions. Not in a personal way, but just make them pay (budget) for the costs they create. Sometimes the best teacher is a mistake, sometimes it’s ok to take risks, sometimes it’s not (like in the core transactional parts of a multi-billion $ ERP).
I would agree this is credible and even acceptable as something companies go through.
BUT, 12 months ago JD was still saying “the strategy is working”, true, read the transcript; then 6 months ago he said it will take until end of year; now he is saying until after FY25.
Changing the message like this is a capital sin for a CEO. You can’t have a180 degree change in assessment in just 12 months. That shows cluelessness.
Nike is dead, this downturn is different because the company has lost its soul along with thousands of its most talented team. Good luck fixing this disaster with employee morale the way it is. Seek alternative employment now it’s going to take you at least 6 months if not longer!