Nike's new CEO said the company messed up 3 key areas that he's trying to fix — and it's bad news for customers who like cheap stuff

Core Insights - Nike's new CEO Elliott Hill aims to address three key mistakes made by the company in recent years, including being overly promotional, losing focus on sports, and damaging relationships with marketplace retailers [1][4][9] Group 1: Company Performance - Nike reported revenue of $12.4 billion for the three months ending November 30, which is an 8% decrease from the previous year [3] - The company's stock has declined over 36% in the last year, indicating significant challenges in sales performance [2] Group 2: Strategic Focus Areas - Hill emphasized the need to reduce promotional sales, which were previously at a 50/50 split between full price and promotional sales, to protect the brand and profitability of partners [4][5] - The company will concentrate on five key categories: running, basketball, training, football, and sportswear, with a renewed focus on athlete insights to drive innovation and product development [6][9] Group 3: Relationship with Retailers - Nike's shift towards direct-to-consumer sales has strained relationships with marketplace retailers, leading to reduced product allocations for major partners like Foot Locker and Dick's Sporting Goods [10][11] - Hill is prioritizing rebuilding trust with key wholesale partners, acknowledging that some feel neglected by the company [11][12]