Nike CEO John Donahoe faces criticism and low confidence from Wall Street, leading to stock decline.

From NBC Universal: 2024-06-28 17:04:39

Nike CEO John Donahoe faces scrutiny as Wall Street confidence wanes following a gloomy earnings report. Sales are projected to drop by 10%, leading to a 20% stock decline. Analysts criticize management over future growth prospects and consumer response to outdated products.

During Donahoe’s tenure, Nike stock has plummeted over 25%, significantly underperforming the S&P 500 and retail ETFs. The company attributes their guidance cut to weak China sales, foreign exchange issues, and missteps in product strategy. Management changes are speculated as necessary for a turnaround.

Nike struggles to retain customers and market share as competitors offer fresher styles and cater to evolving consumer preferences. The company focuses on winning back runners after losing ground due to an excessive focus on direct sales and a lack of innovation. Calls for a management shakeup grow louder.



Read more at NBC Universal: Nike CEO John Donahoe under fire from Wall Street after Q424 report