On Oct. 1 Nike’s share price closed at $33.87, the lowest closing price in over 12 years. The drop follows a period in which the company’s stock has fallen about 81 % from its all‑time high of $177.51 in November 2021.
CEO memo highlights new priorities
In an 860‑word memo to employees, CEO Elliott Hill emphasized three key initiatives. First, he reiterated a commitment to place sport at the center of Nike’s business, noting that “we have more work to do to win over the long term.” Second, Hill announced plans to modernize the supply chain and accelerate related investments. Third, he outlined a restructuring of Nike’s global organization into three geographic regions: the Americas, APGC (Asia‑Pacific and Greater China) and EMEA (Europe, the Middle East and Africa). The memo also mentioned a new campus development in India.
Recent product and marketing decisions under scrutiny
Critics have pointed to several high‑profile marketing campaigns and product decisions that they say shifted focus away from core athletic offerings. In 2019 Nike featured Colin Kaepernick in its 30th‑anniversary “Just Do It” campaign. After the death of George Floyd in 2020, the brand released a commercial urging viewers not to ignore problems in America and to confront racism. In 2023 the company partnered with Dylan Mulvaney, a transgender influencer, to promote women’s leggings and sports bras. Earlier, a 2017 “Equality” commercial highlighted the idea that “the ball should bounce the same for everyone.”
Another point of contention has been the timing of the release of a signature sneaker for star point guard Caitlin Clark. The shoe, delayed until June 2024, arrived after the company launched a signature model for WNBA player A’ja Wilson, despite Clark ranking first in women’s basketball jersey sales. Sports writers Ethan Strauss and Dan Wetzel noted that the decision may have disappointed fans eager for Clark’s product.
Financial outlook and upcoming layoffs
While Nike’s stock has suffered, the company remains a major employer and a significant player in the global athletic market. Hill indicated that additional workforce reductions are planned for 2027, following two rounds of layoffs earlier this year. The company’s focus on supply‑chain efficiency and regional restructuring is intended to improve profitability and restore confidence among investors.
Industry reaction
Analysts have highlighted the broader market context, noting that the decline in Nike’s share price coincides with a general slowdown in consumer discretionary spending and heightened competition in the athletic‑apparel sector. Some observers argue that the company’s recent emphasis on identity‑focused marketing may have alienated portions of its traditional customer base, contributing to the share‑price weakness.
OutKick reached out to Nike for comment on the memo and the recent stock performance but had not received a response at the time of publication.
Original reporting: Fox News (HLL/CB) — read the source article.
