“During one of the busiest shopping weekends of the year, Nike was the only brand to have a 30% discount on most of its footwear at Macy’s famous Herald Square location in New York City.
Nike is in a race for cash. Chief Executive Officer Elliott Hill said after he took over in October that his priority was clearing out inventory. The company is slashing prices on its website so aggressively that it is not only risking its own holiday sales but also weighing on its retail partners. The sneaker giant Thursday reported its third consecutive quarterly sales decline—a 9% drop in currency-neutral revenue from a year earlier.
Its profits fell 10% in the quarter ended Nov. 30 from the year-earlier period. Hill, a Nike veteran who returned to lead a comeback, shared details Thursday on his plan. The company is investing more in marketing, mending relationships with retail partners and returning its focus to sports, he said. Executives warned that some of these moves could hurt Nike’s financial results in the short term. They warned that Nike’s revenue could decline in the current quarter by more than 10% and that the drop could be even steeper in the following quarter. “This isn’t going to be easy, but we’re ready for the challenge,” Hill said Thursday on a call with analysts.”
Source: The Wall Street Journal
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