Nike (NKE), the iconic sneaker brand, is having a tough time. The stock closed in the red for the last four consecutive years and is down nearly 32% for this year. NKE stock peaked in November 2021 and has since lost three-fourths of its market cap.
Amid a sagging stock price, Nike brought back Elliott Hill, a company veteran, to lead the company in October 2024. Hill succeeded John Donahoe, whose strategy of focusing on direct sales while cutting down on wholesale sales backfired after the initial success during the Covid-19 pandemic. In hindsight, the company miscalculated the brand pull and lost out to other brands that were well stocked at third-party stores. Along with mending relations with wholesalers, Hill has shifted Nike’s attention back towards sports, which used to be its USP. However, these measures haven't helped reverse the slide in NKE stock.
