Nike is entering a rebuilding year. Despite better than expected sales last quarter, the company said this week that it’s getting pushed off its corner by competitors with websites full of throwback sneakers.
The sporty brand reported $12.4 billion in revenue in its fiscal Q3 2024, beating analysts’ projections of $12.3 billion. But Nike execs still feel like they’re getting lapped.
No one wants to rock Jordans anymore. Investors say the company got too comfortable relying on its heavy hitters, like its Air Jordan or Pegasus shoes. Air Jordan’s market share at Sporting Goods has remained stable, at around 5% from October to February, but competitors like New Balance and upstart running shoe company On have seen their shares climb past the sportswear giant’s, according to YipitData.
Matt Friend, Nike’s CFO, told investors the brand will scale back its classic shoes and focus on new products, hopefully something to convert On and Hoka wearers.
Adidas marched on: Even with the Yeezy fiasco and the loss of its German national football team deal to Nike, Adidas’s retro Samba and Gazelle styles continue to sell like gangbusters. Though Adidas recently posted a rare annual loss, its shares have jumped 40% over the last year, while Nike’s have fallen 16%.