Step into the world of Nike at an outlet mall in Los Angeles, captured on November 8, 2024.
Witness the essence through Frederic J. Brown’s lens | Afp | Getty Images
New CEO Elliott Hill unveils a transformative vision for Nike, extending beyond initial projections. The company’s journey back to prosperity was detailed by Hill following a period where excessive discounts led to diminishing returns.
Nike has heavily relied on promotional tactics to boost sales but now aims to shift its online operations towards a premium pricing model. However, before this transition can occur, there is a pressing need to clear out old inventory through unconventional means as stated by Hill and CFO Matt Friend.
“Our digital and physical Nike stores have experienced dwindling foot traffic due to product stagnation and lack of compelling narratives,” expressed Hill. “This overreliance on promotions has skewed our sales mix unfavorably… At the start of the year, our online platforms saw an equal split between full-price and discounted items. The prevalence of markdowns has significantly impacted our…
2024-12-19 19:06:47
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