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NIKE’S CEO, Elliott Hill, is wasting no time by addressing the challenges facing the sportswear giant.
Following a disappointing 8% revenue drop in Q2, Hill, who took over the role in October, laid out an ambitious plan to rejuvenate the brand on Thursday.
In his plan, Hill outlined a new strategy.
This new approach focuses on rebuilding partnerships with wholesale collaborators, boosting investments in brand storytelling, as well as strengthening local market teams.
The measures aim to reverse the downward trend and restore Nike’s position as a market leader.
The company reported Q2 revenues of $12.4 billion, which is down from $13.4 billion during the same period last year.
But that wasn’t all.
Declines were seen across the board. Nike’s direct revenue fell 13% and wholesale revenues slipped by 3%.
Net income also dropped significantly, down 26% to $1.2 billion.
During Hill’s first earnings call as CEO, he didn’t shy away from sharing hard truths.
He criticized Nike for losing sight of its core identity, citing an overreliance on a limited range of popular products and insufficient investment in brand development.
The CEO also cited a centralization of resources that neglected key cities and markets as a major issue.
“We need to get back to the basics of sport and strengthen our emotional connection with consumers,” Hill told analysts.
“The consistent feedback we’ve heard is pretty simple: Let’s see more of Nike being Nike,” Hill said.
The CEO further shared, “Some partners and channels feel we’ve turned our back on them, and we stopped engaging consistently.”
Hill emphasized that the retailer would focus its attention on earning the trust of its wholesale partners once again as well as rebuilding those important relationships.
In an effort to move proactively, Hill explained that he’d spoken to many of the brand’s wholesale partners directly.
This includes the likes of Dick’s Sporting Goods, Foot Locker, and JD Sports, as well as major sports organizations like the NBA.
Rebuilding relationships with wholesale partners will help to reestablish a balanced distribution network.
While greater investment in brand storytelling aims to rekindle consumer enthusiasm.
Needham analyst Tom Nikic said, “While fundamentals will be very challenged in the near term, we believe that it takes a back seat to the narrative, which is that of a veteran athlete coming out of retirement to pull his once-proud team out of the dumps.”
The CEO’s willingness to confront the company’s shortcomings head-on and proactively pivot may signal a new chapter for the iconic brand.
Earlier this year, Nike revealed its futuristic-looking footwear that massages your feet and even heats up while you’re wearing them.
A MAJOR illegal sports streaming network visited 812million times to watch football games on the cheap has been shut down.
The world’s leading anti-piracy group have put a stop to infamous illicit websites based in Vietnam, which were accessed internationally.
The Alliance for Creativity and Entertainment (ACE) announced their proud crackdown on one of the largest global sports piracy rings.
Their research found the notorious websites were visited 812million times in the past year, one of the largest ACE operations so far.
The sites were mainly used by people in the US and Canada, where sports games were streamed daily.
They were all pulled down – including bestsolaris.com, streameast.to, markkystreams.com, crackstreams.dev, and weakspell.to.
ACE targeted them through a global investigation and they agreed to transfer 138 domains immediately.
Larissa Knapp, Executive Vice President and Chief Content Protection Officer for the Motion Picture Association (MPA) said: “The shutdown of this globally notorious live sports piracy ring is a huge victory in our campaign against the piracy of live sports programs and follows other recent successful actions by ACE and law enforcement in Vietnam.
“ACE’s live sports members face a unique threat when it comes to digital piracy, as live sports broadcasts lose substantial commercial value once the game ends.
“The takedown serves as a warning to piracy operators everywhere – including operators in live sports piracy – that ACE will identify and shut down their illegal operations.”
The illegal operation affected all ACE members, including ACE’s sports tier members beIN Sports, Canal+ and DAZN.
Ed McCarthy, Chief Operating Officer of DAZN said: “DAZN stands with ACE in the fight to eradicate piracy, which undermines the sports ecosystem at all levels.
“It is very pleasing that a criminal operation of this scale was taken down.
“Piracy often compromises the security of fans’ data, which is then used for illegal purposes, so the closure of this piracy ring has the added benefit that potential subscribers will be guided toward legitimate content providers like DAZN.”
Users trying to access the shut down sited will be redirected to the ACE “Watch Legally” page.