Core Viewpoint - Nike is facing a decline in sales, with a reported 8% decrease in revenue for Q2 FY25 compared to the previous year, and is implementing a new strategy and leadership to regain market share in sports apparel [1] Group 1: Historical Context and Strategy - Analysts suggest that Nike should revisit strategies used during its previous challenges from 2015 to 2018 when it successfully countered Adidas' Ultra Boost sneakers by increasing product launches, re-elevating the Jordan brand, enhancing demand creation spending, and managing inventory effectively [2] - Nike's current focus is on performance wear, particularly in the running segment, which has been a competitive struggle against brands like ASICS, Adidas, Brooks, and Hoka [3][4] Group 2: Product Innovation and Market Competition - Nike is expected to launch new running shoes, including the Vomero 18 on February 27, 2025, as part of its strategy to boost product offerings and regain market share [5] - The company is advised to quickly adapt and produce shoes similar to Hoka's ultra-cushioned designs to remain competitive in the market [4] Group 3: Demand Creation and Marketing Efforts - Nike reported $1.1 billion in demand creation expenses for Q2 FY25, including a significant investment in a Super Bowl ad, which was its first in nearly 30 years, featuring prominent female athletes [6] - The marketing strategy appears to be effective, as Nike topped other Super Bowl advertisers in engagement actions, indicating a positive reception to its promotional efforts [7] Group 4: Future Outlook - Analysts emphasize that for Nike to reclaim its edge in sports apparel, it must focus on launching innovative products that align with consumer preferences [6][8]
Nike can take a leaf out of its past struggles with Adidas to boost sales, analysts say