CMOs eager for a bigger seat at the boardroom table might finally get their wish. Companies are relearning that while brands take years to build, they can unravel in an instant — just ask Nike.
Once the gold standard, Nike’s status is looking shaky thanks to its overzealous push into direct-to-consumer (courtesy of eBay alum and CEO John Donahoe). The move alienated key retail partners, while constant discounting on its own site cheapened the brand. Throw in lackluster innovation, cost-cutting layoffs and the loss of its “cool” to upstarts like On and Hoka, and it’s clear: the business is stumbling to keep pace in the very markets it once dominated.
Things have gotten so shaky, in fact, that Donahoe is stepping down as Nike scrambles for a full-on strategy reboot. His incoming replacement, Elliott Hill got a glimpse of the scale of that challenge earlier this week (October 1) when the company revealed its earnings for the latest financial quarter. Sales slumped 10% over the period, and the company pulled its full-year forecast, plummeting shares as much as 7%. For the world’s biggest sports brand, the climb back just got steeper.
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