The world’s largest producer of sportswear has lost more than 40% of its value after it peaked in 2021, representing about $130 billion of shareholder wealth. Such a slump was mainly caused by a drop in sales and terrible competition. It is highly possible that consumers decide to spend their money on something more important than new sneakers because of high interest rates. It is also possible that buyers simply lost interest in Nike’s products. Analysts suppose that the company should invent something absolutely new to revive buyers’ interest.
Just after Nike realized that they were somewhat behind their sports counterparts, such as On Holding AG, Adidas AG, and Hoka, the company announced plans to reduce jobs and simplify its product range. Nike also lowered its financial expectations. Nevertheless, there is an assumption that Nike is able to stay afloat.
