Nike needs to focus on innovation to mount turnaround: Analyst

Yahoo Finance
Yahoo Finance
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Published 2024-06-28
Shares of Nike (NKE) are slipping after the company reported earnings following yesterday's market close. The footwear and apparel company slashed its full-year guidance, expecting sales to drop 10% during its current quarter and warning of soft sales in China. S&P Global Ratings consumer products director Amanda O’Neill discusses the results in more detail.
O’Neill notes that Nike's revenue declines are surprising. She adds that the company encountered "many challenges," from a weaker macro picture to lost traction in digital strategy, forcing them "to shift and move more into the wholesale channel." From a credit perspective, the trend is concerning if it continues into 2026, O'Neill says.
To mount a turnaround, O'Neill believes Nike will need to focus on innovation and hone in on key consumer trends, such as athleisure and sport.

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