Interesting changes are underway at Nike. With a recent announcement to reduce its workforce by about 2%, Nike is making significant strides in streamlining operations and honing its focus on key growth areas: running, women’s segments, and the iconic Jordan brand. This pivot comes at a crucial time, as we've observed through our research a shift in consumer preferences, with the once-dominant Air Max franchise and the classic swoosh seeing a decline in consumer interest.
Despite these challenges, Nike's dedication to reinventing itself is clear. The Jordan brand, a consistent performer, is taking centre stage, aligning with current trends favouring retro silhouettes. Furthermore, Nike's emphasis on women's products reflects a broader industry trend, spotlighting this segment as a vital growth area.
Amid these changes, Nike's share price stands at $100.71 as of February 2, 2024, navigating through the ups and downs from its all-time high of $173.12 in November 2021. Will this restructuring help? Yes, but the landscape is so much more competitive than before that it will be difficult to recover to their 2021 positon.
