Nike has had a rocky year — here's why a comeback will take time

Core Insights - Nike is facing significant challenges and is on a mission to regain its market position after a difficult year [3] - The company's recent earnings report under new CEO Elliott Hill may signal the start of a long turnaround process [4] Group 1: Company Challenges - Analysts attribute Nike's struggles to a series of strategic errors, leading to a 20% drop in shares and a loss of $28 billion in market capitalization [1] - The decision to limit ties with wholesale partners in 2020 aimed to boost direct sales but resulted in stalled revenue as Covid restrictions eased [4] - Nike's lack of product innovation and withdrawal from wholesale channels allowed competitors like Hoka and On Running to capture market share [5] Group 2: Strategic Adjustments - The company is currently dealing with excess inventory due to sales slowdowns and is focusing on returning to product innovation [6] - Nike plans to center its marketing efforts on sports and clear out old inventory through promotions [6] - The new CEO, Elliott Hill, is expected to lead the company in correcting its previous over-reliance on digital sales channels [2][6]