nike

a supplier whose world cup jerseys have terrible cuts. the shoulder sections of the jerseys don't sit quite right, and they have named this problem shoulder gate. it can be seen in the brazil-morocco match i'm watching right now too, in fact i even spotted it on the spectators in the stands.

it's the world's largest sports apparel and footwear brand, founded in the usa in 1964 by phil knight and bill bowerman. it's recognized globally by its "just do it" slogan and its "swoosh" logo. it sponsors athletes in many sports, football, basketball, and running chief among them, and produces both performance and lifestyle products.

it was the coolest for years...

whatever went wrong, it happened sometime in the last 10 or 15 years.

nike shares have lost about 76% of their value over the past five years.

the company’s market value has fallen from around $264 billion to roughly $57 billion.

the main reasons seem to be a flawed direct to consumer strategy, a lack of innovation, the rise of competitors like hoka and on running, weakness in china, and heavy discounting caused by excess inventory.

management has admitted to some of those strategic mistakes and is trying to rebuild relationships with traditional wholesale partners, put more emphasis on product innovation, and clean up inventory.

the problem is that the market seems to expect the recovery to take a long time.

personally, my reason for moving away from nike is much simpler: comfort, design issues, and declining product quality.

the last four pairs i bought all had problems.

when a company this big is selling shoes that literally squeak with every step, something has gone seriously wrong.

spending 18 years in the s&p 100 and then basically being told, “you’re not top 100 anymore,” is a pretty brutal slap in the face for nike.

the company was worth around $264 billion in 2021. now it is closer to $57 billion.

the interesting part is not that nike is disappearing. it is that one of the most recognizable sports brands in the world has lost some of its old dominance while hoka, on, adidas, and chinese brands have gained ground.

and nike is still nike. the swoosh is still one of the most recognizable logos on earth.

the problem is not brand awareness.

people just do not seem to have the same “if it is nike, i want it” mentality anymore.

so nike’s real challenge is not being recognized.

it is becoming the brand people actively choose again.