Nike Is Having a Really Bad Year

Summary

This video explores the recent challenges faced by Nike, once the unassailable leader in athletic footwear and apparel. Despite a $50 billion annual revenue, Nike's share price has plummeted 60% in three years due to strategic missteps and competition from innovative brands like On Running and Hoka. The company's shift to e-commerce under CEO John Donaho initially seemed successful, but post-pandemic consumer behavior and a saturated resale market have led to a decline in revenue. The video examines Nike's digital strategy, the importance of product innovation, and the rise of competitors focusing on functionality, suggesting that even the top dog in the industry must innovate to remain relevant.

Takeaways

• 📉 Nike's share price has fallen by almost 60% over the past 3 years, erasing over $100 billion of market capitalization.
• 🏃‍♂️ For the fiscal year 2025, Nike projects a revenue decline by a mid single digit percentage, marking their first decline in over a decade excluding the pandemic.
• 🤖 The video is sponsored by Nvidia AI, which offers a service to create publish-ready videos from text-based prompts.
• 🛍️ Nike's business model involves three main sales channels: wholesale, owned stores, and e-commerce, with varying profit margins.
• 👟 Nike's dominance in the athletic footwear and apparel market is attributed to its massive revenue, allowing for extensive athlete sponsorships and marketing.
• 💡 The appointment of John Donaho as CEO indicated a strategic shift towards digital strategies and technology to maximize profits.
• 📲 Nike's apps aim to engage consumers and drive sales, with some targeting specific consumer segments like sneaker enthusiasts.
• 🔄 Donaho's strategy involved reducing reliance on the wholesale channel to increase direct sales and profit margins.
• 🚀 The pandemic initially boosted Nike's e-commerce sales, tripling their revenue from e-commerce between 2019 to 2022.
• 💸 The secondary sneaker market's speculative bubble benefited Nike, but as the bubble burst, so did the demand for their limited edition shoes.
• 🚫 Nike's focus on digital strategy and collector appeal may have overshadowed the need for functional product innovation, opening opportunities for competitors like Hoka and On Running.

Q & A

What is the main focus of the video?

The video discusses the challenges faced by Nike, including a significant drop in share price and market share, and analyzes the strategic missteps and competitive threats that have put the company on the back foot.

How much has Nike's share price fallen over the past 3 years according to the video?

Nike's share price has fallen by almost 60% over the past 3 years, which has wiped out well over $100 billion of market capitalization.

What is the projected revenue decline for Nike in the fiscal year of 2025?

For the fiscal year of 2025, Nike is projecting that their revenue will decline by a mid single-digit percentage.

What is the significance of the video sponsor, Nvidia AI, in the context of the video?

Nvidia AI is presented as a tool that can help content creators produce videos with just text-based prompts, showcasing how technology can assist in the creation and editing process, which is relevant to Nike's digital strategy discussed in the video.

What are the three main channels through which Nike sells its products?

Nike sells its products through a wholesale channel to third-party retailers, through its own stores, and via e-commerce on its website and mobile app.

How does Nike maintain its top-of-mind presence among consumers?

Nike maintains its top-of-mind presence by sponsoring hundreds of professional athletes worldwide and through celebrity endorsement deals, which潜意识地 makes Nike a default brand for athletic shoes.

What was the unusual choice for Nike's new CEO in 2020, and what was the reason behind it?

John Donaho, a technologist with experience in e-commerce and enterprise software, was an unusual choice for the CEO of a sportswear company. Nike wanted him to focus on their digital strategy and leverage technology to maximize profits.

What are the four apps that Nike currently has, and what is the purpose of each?

Nike has the main Nike app and the sneakers app for e-commerce, the Nike Run Club for tracking running activities, and the Nike Training Club for providing pre-made workouts. The apps aim to keep the Nike brand top of mind and potentially convert users into paying customers.

How did the COVID-19 pandemic affect Nike's e-commerce sales?

The pandemic led to a significant increase in e-commerce sales for Nike, as people were forced to stay at home and traditional retail was disrupted. E-commerce revenue tripled from $3 billion in fiscal year 2019 to $11 billion in fiscal year 2022.

What are the two new competitors that have gained significant popularity in the athletic shoe market, and what is their main selling point?

Hoka and On Running are the two new competitors that have seen a massive surge in popularity. Both brands focus on functionality and comfort as their main selling points, with Hoka known for its thick soles and On Running for its cloud-like cushioning technology.

What was the main issue with Nike's strategy during the pandemic, and how did it affect their product innovation?

Nike's strategy during the pandemic focused heavily on digital engagement and e-commerce, which led to an overemphasis on limited edition releases and color variations. This took their focus away from product innovation and functionality, creating an opening for competitors to offer more innovative products.

Outlines

00:00

📉 Nike's Market Struggles and Strategic Shifts

This paragraph discusses the challenges faced by Nike, once the undisputed leader in athletic footwear and apparel. It highlights the company's significant drop in share price, losing over $100 billion in market capitalization, and the strategic missteps that led to this situation. The video script introduces the topic of Nike's business model, including its reliance on contract manufacturers and three main sales channels: wholesale, owned stores, and e-commerce. It also mentions the company's marketing strategy through athlete endorsements and the impact of the COVID-19 pandemic on its sales, which surprisingly led to an increase in e-commerce revenue. The paragraph ends with a mention of the video sponsor, Nvidia AI, which offers content creation tools for aspiring YouTubers.

05:00

🛍️ Nike's Digital Transformation and E-Commerce Focus

The second paragraph delves into Nike's digital strategy under the leadership of CEO John Donaho, a former e-commerce and software executive. It outlines Nike's four main apps, two of which are e-commerce platforms targeting different consumer segments, and the other two being free fitness apps aimed at keeping the Nike brand at the forefront of consumers' minds. The strategy focused on leveraging technology to increase profits and reduce reliance on the wholesale channel, which was seen as less profitable. The paragraph also discusses the impact of the COVID-19 pandemic, which ironically boosted Nike's e-commerce sales as traditional retail was disrupted, and the speculative bubble in the sneaker resale market, which benefited Nike's limited edition sales.

10:01

🚀 The Pandemic's Unintended Boost to Nike's Sales

This paragraph examines how the COVID-19 pandemic, despite the initial challenges, ended up benefiting Nike due to changes in consumer behavior. With people staying at home, the demand for new sneakers decreased, but the company still managed to achieve record revenue and operating profit in fiscal year 2021. The paragraph explains how stimulus checks and low-interest rates fueled a speculative bubble in the sneaker market, leading to high resale values for limited edition Nike shoes. It also discusses the strategies employed by Nike to capitalize on this demand, such as lottery systems and shock drops on their app, which kept consumers engaged and eager to purchase their products.

15:01

📉 The Downturn and Nike's Strategic Overcorrection

The final paragraph addresses the reversal of fortune for Nike as the pandemic subsided and consumers returned to physical stores. It critiques Nike's overemphasis on e-commerce and digital engagement, which led to a neglect of product innovation and a saturation of the market with limited edition variations. This created an opportunity for competitors like Hoka and On Running to gain popularity by focusing on functionality and comfort. The paragraph also points out Nike's arrogance in assuming their brand dominance would allow them to continue selling retro designs without innovation. It concludes with the company's need for bolder moves to reinvigorate growth and the acknowledgment that even market leaders are not immune to challenges.

Keywords

💡Nvidia

Nvidia is a leading technology company known for its GPUs and AI technology. In the context of the video, it is the sponsor that offers AI services to help content creators produce videos with text-based prompts, showcasing its capabilities in scriptwriting, video editing, and voice cloning. It's an example of how technology can facilitate and democratize content creation.

💡Nike

Nike is the world's largest athletic footwear and apparel brand, recognized for its dominance in the sportswear market. The video discusses Nike's challenges, including a significant drop in share price and market share loss to competitors. Nike's business model, branding strategies, and digital initiatives are central to the video's narrative.

💡Market Capitalization

Market capitalization refers to the total market value of a company's outstanding shares of stock. The script mentions that Nike's market capitalization has been wiped out by over $100 billion, indicating a substantial loss in investor confidence and company value, which is a critical aspect of the video's discussion on Nike's financial performance.

💡Strategic Missteps

Strategic missteps denote errors in a company's strategic planning or execution that can lead to negative outcomes. The video attributes Nike's decline to such missteps, particularly in its digital strategy and product innovation, which are examined as key factors contributing to the company's current challenges.

💡E-commerce

E-commerce refers to the buying and selling of goods or services using the internet, and it has become a significant distribution channel for companies like Nike. The video highlights Nike's shift towards e-commerce to increase profit margins and the subsequent challenges faced when this strategy did not yield the expected long-term results.

💡Wholesale Channel

The wholesale channel is a method of distribution where products are sold to retailers in large quantities at lower prices. The script discusses Nike's reduction of reliance on the wholesale channel to drive direct-to-consumer sales, which is a strategic decision that has had mixed outcomes for the company.

💡Sneaker Resale Market

The sneaker resale market is where limited edition or highly sought-after sneakers are bought and sold at prices above their retail value. The video describes how this market has impacted brands like Nike, with fluctuations in demand and speculation affecting the company's sales and brand strategy.

💡Scarcity Value

Scarcity value is the perceived increase in value due to limited availability. The video explains how Nike leveraged scarcity value through limited edition releases and shock drops to drive interest and sales, but this strategy became less effective as the market became saturated.

💡Innovation

Innovation refers to the introduction of new ideas, methods, or products. The script criticizes Nike for its lack of innovation in product functionality, focusing instead on design variations for collectors, which opened opportunities for competitors to gain market share with more functional offerings.

💡Hoka and On-Running

Hoka and On-Running are athletic shoe brands that have gained significant popularity by focusing on functionality and comfort. The video positions these brands as successful competitors to Nike, highlighting their rapid growth and the threat they pose to Nike's market dominance.

💡Pandemic

The pandemic refers to the global outbreak of COVID-19, which had a profound impact on consumer behavior and business operations. The video discusses how the pandemic initially benefited Nike's e-commerce sales but later led to a reevaluation of their strategies as consumer habits shifted post-pandemic.

Highlights

Nvidia AI sponsors the video, offering a tool to create videos from text prompts, including scriptwriting, stock footage selection, and voice generation.

Nike's share price has fallen by almost 60% over the past 3 years, losing over $100 billion in market capitalization.

Nike is projected to have its first revenue decline in over a decade for the fiscal year of 2025.

Nike's business model involves designing shoes and clothing, manufacturing through contracts, and selling through wholesale, owned stores, and e-commerce.

Nike spends billions on athlete endorsements to maintain top-of-mind awareness for consumers.

John Donaho, Nike's CEO, focuses on leveraging technology and digital strategy to maximize profits.

Nike has four main apps: two e-commerce platforms, and two fitness apps to maintain brand engagement.

CEO Donaho reduced reliance on the wholesale channel to increase direct-to-consumer sales and profit margins.

The pandemic boosted Nike's e-commerce revenue, which tripled from fiscal year 2019 to 2022.

Stimulus checks and low-interest rates during the pandemic led to increased consumer spending on Nike products.

Speculative bubbles in the sneaker resale market have led to high demand and prices for limited edition Nike shoes.

Nike's digital strategy included shock drops and raffles on the sneakers app to create hype and scarcity value.

The resale market saturation and reduced speculation have led to a decline in Nike's e-commerce growth post-pandemic.

Nike's focus on collectors and resellers during the pandemic may have neglected product innovation and functionality.

New competitors like Hoka and On Running have gained popularity with a focus on shoe functionality and comfort.

Nike's arrogance in its brand dominance may have led to a lack of constant innovation, opening the door for competitors.

CEO Donaho has shifted focus from digital strategy to new product innovations to reinvigorate revenue growth.

Despite challenges, Nike remains the largest sportswear brand in the world, emphasizing the need for continuous innovation.

Transcripts

this video is brought to you by Nvidia

AI with over $50 billion of annual

revenue Nike is the largest athletic

footwear in apparel brand in the world

by far it's one of those Brands you kind

of take for granted they've been the top

athletic brand for as long as you can

remember and it would be hard to imagine

this will change at any point in the

foreseeable future but nothing lasts

forever over the past 3 years Nike's

share price has fallen by almost 60%

wiping out well over $100 billion of

market capitalization they've been

losing Market Shar to Innovative new

competitors like on running in Hoka for

the fiscal year of 2025 they're

projecting that their revenue will

decline by a mid single digit percentage

excluding the pandemic this will be the

company's first Revenue decline in well

over a decade in this video we'll look

at the Strategic missteps that put Nike

on the back foot and why the world's

most popular athletic brand no longer

looks so

bulletproof before we get into that I

just want to say that as someone who's

been making YouTube videos for the past

4 years there's a lot that goes on

behind the scenes to make a video like

this one there's many hours of research

script writing recording and editing for

someone who just wants to get started as

a content creator it can be intimidating

to try to learn all these skills that's

where today's video sponsor N Video AI

comes in they can take any idea and help

you create a publish ready video with

just text based prompts for example

let's say you want to create a video

about the sneaker resale market and how

this affects Brands like Nike from there

Nvidia will create an engaging script

pick highquality relevant stock footage

create a human- sounding voice and

within minutes you can see the first

draft of your video hey there business

enthusiasts today I'm diving into a

fascinating topic that's shaking up the

retail world you can also give it simple

text commands to make any changes for

example if you want the intro to be more

fast-paced I bet you didn't know how the

sneaker resale Market is shaking up big

Brands like Nike the coolest part is

that you can upload a 30-second clip of

your voice giving NV AI permission to

clone it and then your voice can be used

in all future projects you can try in

video AI for free but if you'd like to

clone your voice and create videos

without a watermark I'd highly recommend

choosing the paid plan which starts at

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hundreds of dollars you'll otherwise

have to spend on editing tools and stock

footage subscriptions since they have

them automatically included just go to

the link in the description and use my

code to get twice the number of video

generation credits in your first month

and now back to the video on the surface

Nike's business model is pretty simple

they design new shoes and clothing they

send the design to contract

manufacturers mostly in China and

Southeast Asia and then the final

products are sold to customers via three

channels first there's a wholesale

Channel Nike sells a product to third

party retailers like Footlocker or

Macy's secondly is through Nike's own

stores Nike operates more than 1,000

stores around the world that exclusively

sell Nike products finally there's the

e-commerce Channel Nike has a website

and mobile app where you can order

products directly

wholesale has the lowest gross margins

as wholesale prices are significantly

lower than the retail price the retailer

needs to cover the overhead cost of

operating the store as well as make a

profit for itself Nike's owned stores

have higher margins because they keep

the profit that would otherwise be made

by a third party seller e-commerce has

even higher margins not only does Nike

keep all the profits for itself it also

foros the overhead cost of operating a

brick and mortar store the main task of

any consumer brand is to convince

consumers to buy your products their two

aspects to this first is the products

themselves you need to design shoes that

are desirable either in terms of

functionality or style secondly you need

to make sure your brand is always at the

top of the consumer's mind every year

Nike spends billions of dollars

sponsoring hundreds of professional

athletes around the world they've signed

some of the largest celebrity

sponsorship deals of all time for

example it is estimated that Nike has

paid Michael Jordan over $1.2 billion to

use his brand in likeness similarly in

2015 they signed a deal with LeBron

James with an estimated lifetime value

of $1 billion the endorsements of

professional athletes in sports leagues

keeps Nike top of mind if all the

Superstar athletes are wearing Nike

subconsciously Nike becomes a default

brand that most people think of for

athletic shoes Nike is the largest

athletic brand in the world by far in

the most recent fiscal year they

generated $51 billion of Revenue this is

more than double their closest

competitor Adidas which has $23 billion

of annual revenue because Nike generates

the most Revenue they have the most

money to spend on sponsoring athletes

and other forms of marketing nobody can

compete with Nike in terms of Mind share

this gives them a seemingly

insurmountable Advantage versus any

smaller competitor in 2020 Nike

appointed John Dono to be their new CEO

on the surface he was a bit of an odd

choice for the job he lacked experience

in sportsware or fashion instead he was

a technologist having previously served

as a CEO of eBay in the enterprise

software company service now so why

would Nike want to hire an e-commerce

and software executive as their new CEO

from a product and brand perspective

Nike already had things figured out

given their established and ubiquitous

brand name it shouldn't take a huge

amount of expertise just to maintain

their position at the top instead

donoho's main focus was on Nike's

digital strategy and how they could

leverage technology to maximize

profits Nike currently has four apps the

main Nike app and the sneakers app are

e-commerce storefronts where you can

order Nike products directly

the Nike app targets the average

consumer the sneakers app targets

hardcore sneaker heads think of people

who spend thousands of dollars on shoe

collections which they display on their

walls or even people who try to buy and

sell valuable sneakers for a profit

we'll talk more about the sneakers app

in hardcore sneaker heads shortly the

second two apps are the Nike run club

and the Nike Training Club The Run Club

helps you keep track of your running

while the training Club gives you

pre-made workouts you can do at home

both apps are free Nike doesn't generate

any Revenue from them directly the idea

is that if people spend time using

Nike's fitness apps the Nike brand will

stay top of mind the users of these free

apps will hopefully convert to paying

customers CEO John donaho saw the

potential of these apps through the apps

Nike can advertise and sell shoes

directly to the consumer they can own

the entire customer

relationship remember that of Nike's 3

distribution channels e-commerce and

Nike owned stores have higher profit

margins while selling wholesale has the

lowest profit margins while wholesale

offers the lowest profit margins the

advantage is that you get access to the

Retailer's customer base for instance if

a customer visits Foot Locker without a

specific brand in mind the presence of

Nike shoes might lead them to purchase a

pair that they hadn't initially

considered John Dono reasoned that

Nike's brand value was so strong that

many consumers would specifically seek

Out Nike stores or use the Nike app to

purchase their products through their

apps Nike can directly give personalized

promotions and remind consumers to shop

at Nike shortly after taking over as CEO

in January of 2020 donaho decided that

Nike could reduce its Reliance on the

wholesale Channel Nike began severing

ties with several long-standing Retail

Partners including Bel Dillards elins

and zapo even for retailers that they

didn't cut off completely Nike decreased

the quantity and selection of what they

would sell to them by cutting back on

distribution through third party

retailers Nike aimed to drive consumers

to purchase directly from them thereby

achieving higher gross margins gono's

shift to e-commerce came at the perfect

time within months the pandemic struck

greatly disrupting the traditional

retail model many brick and mortar

stores were forced to close their doors

due to the pandemic related restrictions

Nike was de prioritizing their

relationships with these retailers

anyway this hurt Nike to an extent

because their own retail stores also had

to be shut down but remember that the

highest margin sales channel is

e-commerce thanks to the pandemic this

high margin sales Channel increased

massively in the fiscal year 2019 Nik

generated about $3 billion of revenue

from e-commerce by the fiscal year 2022

this had tripled to 11 billion

representing 24% of total revenue Nike

has a weird fiscal year where fiscal

2022 is the 12 months ended May 31st

2022 at first you might think a pandemic

would be bad for Nike with people forced

to stay at home all day there's not so

much need to buy new sneakers Nike

indeed suffered a slight decrease in

Revenue in fiscal year 2020 but in

fiscal year 2021 they generated record

revenue of $45 billion and a record

operating profit of $7 billion the

pandemic inadvertently caused two big

benefits for Nike firstly stimulus

checks and enhanced unemployment

insurance put more cash in consumers

Pockets much of this went to purchasing

Nikes more importantly the zero interest

rate policies of central banks caused

speculative bubbles to form not only in

the stock market but also in alternative

asset classes one alternative asset

class is Nike shoes Nike regularly

creates Limited addition trims of its

shoes certain colors and trims may only

be sold for a limited period of time and

in limited quantities this scarcity

often means the value of certain shoes

are significantly greater than the

retail price there are large secondary

markets such as stock X where people can

resell valuable shoes many people buy

Nike shoes not because they want to wear

them but because they want to flip them

on stockx for a profit the height of the

insanity is best exemplified by a report

published by CNA inside in October of

2020 they interviewed a 16-year-old in

Singapore who is making the equivalent

of $20,000 per month buying shoes on

Nike's website and flipping them on the

secondary market demand for limited

edition models was so great that new

releases would sell out within seconds

so people created software programs to

place orders autonomously this is

against Nike's terms of service but with

enough computer skills many scalpers

were able to get around the guard rails

while Nike doesn't directly benefit from

secondary Market transactions they

certainly benefited from the hype and

increased Demand with such a strong

secondary Market their limited edition

shoes were almost guaranteed to sell out

Nike knew that demand out strip supply

for limited edition drops on the Nike

sneakers app they have Lottery systems

you can enter a drawing for a random

chance to be allocated a pair of shoes

they also have shock drops where you'll

randomly be given the opportunity to buy

a difficult to find shoe for a limited

time this kept sneaker heads glued to

their phones if they got the opportunity

to pay $200 for a new pair of Jordans

they'd happily take it because those

shoes could be worth even more on the

secondary Market Nike could see which

types of shoes generated the most

interest from collectors typically new

variations of classic shoes such as

their dunk Low's or Jordan Retros were

the most sought after on the resale

Market to take advantage of this Nike

started flooding the market with

hundreds of new variations in color

schemes Nike's success during the

pandemic appeared to vindicate CEO John

donoho's strategy with e-commerce now

representing a quarter of their sales

deemphasizing their wholesale Channel

seemed like a wise decision the digital

strategy allowed Nike to maintain

connections to their customers even when

brick and mortar stores were closed this

perceived success caused the company's

share price to Surge in 2021 at its peak

Nike's market capitalization reached

$280 billion it was shocking that a shoe

company could be worth more than A4

trillion dollars on an earnings call in

June of 2021 Dono proclaimed that the

pandemic induced Shi in consumer

Behavior ge's digital engagement in

e-commerce was permanent he targeted for

50% of the company's Revenue to come

from digital channels by

2025 donaho grossly overestimated the

importance of e-commerce in a post

pandemic World once people were

vaccinated many of them went back to

shopping malls and department stores

Nike's e-commerce Revenue peaked at 26%

of total sales in fiscal year 2023 in

fiscal 2024 e-commerce declined slightly

to 25% of Revenue the company's previous

Target of 50% e-commerce Revenue by 2025

is clearly not going to happen in 23

Nike started increasing wholesale

distribution to third party retailers

this was an embarrassing reversal and

showed the limits to a directed consumer

business model as their e-commerce

charges slowed down their total revenue

flatlined in 2024 even more concerningly

the company recently announced that they

expect Revenue to decline by mid singled

digit percentage in fiscal 2025 back in

2021 investors were willing to pay

premium valuation for Nike stock because

of its strong Revenue growth now that

revenue is shrinking investors ENT has

collapsed Nike's share price has fallen

almost 60% from its highs so what went

wrong as the FED started raising

interest rates the amount of speculation

in the sneaker resale Market decreased

substantially the days of 16-year-olds

making $20,000 a month flipping shoes

are long behind us at the peak of the

speculative bubble new Air Jordan Ones

would sell for more than double the

retail price on the secondary Market

seeing the massive demand Nike started

increasing prices and increasing the

number of shoes they made for each

Limited Edition run by 2023 they had

saturated the market and now most Jordan

sell for a discount to list price a

large part of Nike's digital strategy

relied on scarcity value the shock drops

and Raffles on the sneakers app are only

interesting if the shoes are difficult

to obtain with the resale market now

being saturated there's no reason to

check your sneakers app for new releases

with declining usage on their apps Nike

had no choice but to go back to their

old Retail Partners to start moving

inventory over the past few years NE is

focused primarily on making slight

variations and changes in color scheme

for their limited edition releases this

is what collectors wanted during the

resale crazees of 2020 and 2021 but this

caused them to take their eye off the

ball in terms of product Innovation they

were no longer making improvements in

terms of the functionality of their

shoes by overly focusing on collectors

and resellers they neglected the people

who just want a good quality pair of

running shoes this created an opening

for Nike smaller competitors over the

past few years two new shoe brands Hoka

and on- running have seen a massive

surgeon popularity technically neither

brand is new as both were founded more

than 10 years ago but until recently

there are Niche Brands who very few

people would recognize over the past 6

years hooka sales have grown Eightfold

over the past 5 years on running sales

have increased Sevenfold to be clear

these brands are still minnow compared

to Nike in the most recent fiscal year

on running and hok's combined revenue is

equal to 7% of Nikes while that isn't

huge it's also not nothing so what are

Hoka and on- running doing right both

Brands focus on functionality as their

main selling point hokas with their

absurdly thick soles are more

comfortable than most other shoes this

can be useful both when you're running

and when you're just standing around on

running's Main selling point is her

pented cloudtech Souls which they claim

gives a sensation of running on clouds

with Nike having failed to deliver

groundbreaking Innovations in recent

years consumers are willing to try out

new brands with novel

designs Nike's main problem is arrogance

they thought their brand was so dominant

that they could sell overpriced retro

designs to sneaker heads indefinitely

the reality is in the fast-moving

athletic shoe industry you need to

innovate constantly just to remain

relevant with their share price tanking

Nike CEO finally understands the flaws

of his previous strategy in his recent

media appearances he's no longer

bragging about their digital strategy

like he used to instead he's talking

about new Innovations for example this

past may they launched a pegasus 40 one

which supposedly has some design

Innovations compared to the previous

version but it hardly seemed like a game

changer Nike is going to need Bolder

Innovation than this if they want to

reinvigorate revenue growth with all

that being said it's important not to

overstate Nike's problems it's still the

largest sportsware brand in the world by

far but even the top dog is not

Invincible all right guys that wraps it

up for this video what do you think

about Nike let us know in the comments

section below as always thank you so

much for watching and we'll see you in

the next one Wall Street Millennial

signing out