The last three years have not been kind to U.S. apparel giant Nike (NYSE: NKE). As of the Dec. 18 close, shares had dropped approximately 34%, with sales, margins, and profits all down significantly over the same period.
A series of strategic missteps contributed to this, including weak product innovation versus emerging competitors like ON (NYSE: ONON). The company’s direct-to-consumer (DTC) push also had unintended consequences. As Nike focused on its own sales channels, competitors gained visibility through retailers like Foot Locker, which had to fill shelves with alternative products.
