Thread regarding Nike Inc. layoffs

Key Events

Correct me if I am wrong, pile on and expand if needed, here are 4 key things I am tracking, let's say this is last 4 years:

  1. March 2022 - Global supply chain issues slashed Nike's profit margins.
  1. September 2022 - Nike overbought inventory to counter supply chain problems, leading to a ~50% investor surplus (not great for the balance sheet).
  1. June 2023 - Inflation hit hard, and people cut back on discretionary spending, squeezing Nike's profit margins. Nike's stuck in that awkward middle ground of not being cheap but not luxury either.
  1. June 2024 - Last month, Nike gave some of its most pessimistic FY2025 guidance yet, signaling that turning things around and rolling out new product lines is gonna take way longer than expected.
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| 971 views | | 4 replies (last July 4, 2024) | Reply
Post ID: @OP+1tj87qkr

4 replies (most recent on top)

Huge Investments into virtuals instead.
NFTs and Nikeland

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Post ID: @2tpt+1tj87qkr

2 big strategic blunders

  1. Getting rid of sport categories
  2. Going too hard after NDDC and ditching wholesale

Resulted in

  1. Loss of sport focus and innovation
  2. A clusterf_k in tech trying to build DTC capabilities
  3. Wrecked culture with too much churn and lost talent
  4. Too many things on the platter

Leaders ditched the maxims:

  1. Forgot that innovation was critical
  2. Too many new leaders were not sponges (including the CEO and other senior leaders). Thought they knew best.
  3. They did not simplify and they did not go.
  4. Forgot that we were first and foremost a brand
  5. Tried to decide for the consumer where we wanted them to shop.

But they are still here!

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Post ID: @fea+1tj87qkr

One for the top:

Jan 2020: CDA signals the demise

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Post ID: @mtz+1tj87qkr

that's pretty much it...

if we could use names this list list would have been a bit different but for a generic one it's pretty good

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Post ID: @sly+1tj87qkr

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