Nike implements turnaround strategy amid declining sales and market share

Nike is currently undergoing a turnaround strategy led by veteran Elliott Hill following several years of declining sales, lost customers, and reduced market dominance. While recent financial results show signs of progress, the company faces significant challenges, including a 75% drop in share price over the last five years and its recent removal from the S&P 100 index.

Industry analysts point to several strategic errors that have hindered the brand, such as prioritizing direct-to-consumer online sales at the expense of retail partnerships and shifting research and development focus toward digital operations rather than product innovation.

Further complicating the recovery is the loss of high-profile endorsements, most notably football star Kylian Mbappé, who recently ended a 20-year association with Nike to join the Swiss competitor On.