From CNBC: 2024-04-12 14:55:19

Nike CEO John Donahoe admitted the company veered too far from wholesale partners like Macy’s and DSW in favor of direct-to-consumer sales. This strategy shift tripled Nike’s digital business to 30% of overall sales but strained margins with inventory and returns concerns. Analysts argue the move hurt innovation and partners like Foot Locker. Nike has since restored some wholesale partnerships, recognizing the importance of diverse sales channels amidst market challenges. This comes as Nike pursues a $2 billion cost-cutting plan and lays off 2% of its workforce to focus on key growth areas like running, women’s products, and the Jordan brand. Donahoe emphasized the importance of meeting consumer preferences across digital and physical retail channels.



Read more at CNBC: Nike CEO acknowledges it went too far in direct push