Milton Fuke

Nike experienced sluggish growth due to rising competition, consumer pullback, and strategy missteps Sales grew only 1% last year and were flat last quarter, with a projected 10% drop next quarter Stock plunged 12% during after-hours trading Facing consumer slowdown for discretionary goods and competition from brands like Hoka and On Customers shifting towards basics and experiences over expensive sneakers and athletic clothing Hoka, a French brand known for comfort, is growing in the market Nike's distribution strategy change backfired, leading to a decrease in sales Nike underestimated the importance of third-party retailers and has since brought back some of the retailers initially cut out #nike #sportswear #strategy #performance #hoka https://lnkd.in/dxHz-w9x

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Working in the arenas of athletes, products, and business, I am constantly thinking about what "value" is. Not only for the companies, but also for the athletes of today, who have more access to information, reach, and desire/require a sense of collaboration and ownership for what they involved themselves in. As a former athlete, I think this is one of the biggest missed understandings between companies, brands, and businesses working with athletes. Everyone is looking to incorporate athletes, but what matters is how you do it authentically for both parties, to create winning deeper partnership chemistry that is not as transactional. https://lnkd.in/gUuWpKXC

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One day after EssilorLuxottica announced its deal to acquire Supreme from VF Corporation, Meta, Facebook's owner, is in talks to acquire a stake of about 5% in the eyewear company. Based on recent market value, a roughly 5% stake could be valued at around $5 billion, a relatively small for Meta, given its market value of around $1.2 trillion. EssilorLuxottica makes Meta's Ray Ban smart glasses and sales of the glasses have exceeded expectations. The devices, an important part of Meta’s hardware strategy, allow users to take photos and listen to music with the frames of their glasses, among other features. Maintaining ties with Luxottica is crucial for the success of smart glasses devices and the company’s ambitions to build the so-called metaverse, which is a term used to describe people interacting in a 3-D version of the internet simultaneously. A third generation of Ray-Ban Meta glasses, expected to include a small screen display, is expected to be ready for consumers in time for the 2025 holiday season. The allure of Luxottica’s Ray-Ban brand is important to the success of a tech device that users are expected to wear on their faces. Luxottica’s ownership of LensCrafters, the prescription-eyewear retailer, also plays a key role in selling the Ray-Ban Meta to users who require prescription lenses. The two companies began working together several years ago for the release of the first generation Ray-Ban Stories smart glasses, which went on sale in 2021. The initial device struggled to catch on with consumers, and among the glasses that were sold, only 10% of the Ray-Ban Stories were actively used by their purchasers. The second-generation Ray-Ban Meta glasses went on sale in September and have done significantly better than their predecessors. The Ray-Ban Meta glasses operate more quickly and have better cameras than their predecessor. The Ray-Ban Meta also includes nascent generative #AI technology that allows users to ask the device for information about the things in front of them, such as the breed of a cat. The Ray-Ban Meta glasses have proven popular for users who want to shoot hands-free videos of their children playing and first-person videos of themselves while going on roller coasters or riding bikes. Meta hasn’t said how well the Ray-Ban Meta glasses have sold, but CEO Mark Zuckerberg said in April that the device was doing well and that a market for that type of device was developing sooner than he would have expected. Meta sells its own devices to employees at a discount, and offers the Ray-Ban Meta glasses at a 15% discount with a limit of 3 pairs per employee. The new glasses have proven so popular internally that some employees have tried to get extra pairs from their colleagues after hitting the 3-pair limit. #strategy #technology #smartdevice https://lnkd.in/ePwG-bSc?

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Gen Z LatAm. Pushing Brands Forward Walking through Mexico City, the Gen Z (born between 1997 and 2012) Manifesto was clear : They value authenticity over perfection and express themselves beyond brand messages. They are hyperconnected, inclusive, and engage in multiple digital communities. They are empowered to take action and fight for the reality they believe in #fashion #innovation #brand #moda #nikewomen #leadership #design #creativity #luxury #havefun #latam #culture What does it mean for brands to meet Gen Z where they are? It means embracing both broad and personal engagement. Gen Z values community and relatability over celebrity endorsements. They prefer micro-influencers with smaller but more engaged audiences, as these influencers understand and live within their communities. Authentic, organic content is key. TikTok is particularly influential in Latin America, highlighting Gen Z's preference for platforms where they feel truly represented and connected. In LatAm, the TikTok penetration is above Europe and Asia. https://lnkd.in/gbb8ssMn Self-expression is paramount, and Mexico City creates the vibrant and multidimensional perfect backdrop for emerging sub-cultures. https://lnkd.in/gtwBzAbN Gen Z in Mexico City wants to stand out and always seeks unique products and trends. Emerging designers and stylists, deeply intertwined with the local scene, understand global fashion trends while infusing them with a local flavor. Brands must tap into this dynamic by offering products and mixing different experiences that cater to global trends and local individuality. Tiempos represents that complexity, being a local luxury designer brand that reached international audiences by being part of Bella Hadid’s wardrobe. https://lnkd.in/g64H3M3U Let’s not forget about the shopping journey. For Gen Z, it’s a seamless blend of TikTok, Instagram, physical stores, and online platforms. From upscale malls to trendy neighborhoods, their shopping experience is interconnected. They purchase through any device or channel, but surprisingly, they value physical stores for their experience. As one Gen Zer shared, “I need to validate, I need to touch, I like to have somebody to ask about the product, and I am open to suggestions.” Brands must integrate digital and physical journeys to engage with this audience effectively. The Gen Z consumer in Latin America is part of a global tribe with distinct local nuances. They navigate seamlessly between digital and physical spaces. Immersed in their communities, they cherish their self-expression and resist being labeled. Brands must balance global trends with local authenticity, integrating digital and physical touchpoints to engage this diverse and self-assured audience that continues pushing Brands forward. Thank you GenZ LatAm

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Big questions on the horizon for Nike and the entire footwear industry. Myself and Dejan Pralica dive into key trends and challenges on this week’s SoleSavy Podcast. From Nike’s leadership shifts to the rise of newer brands like On. Check it out! #sneakers #footwearindustry #Nike #SoleSavy #podcast”

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Nike CEO, I think we have one of the most beautiful, simple and aspirational mission statements that exists. To bring inspiration and innovation to every athlete* in the world. Three key words there: inspiration, innovation, athlete. It is Nike's responsibility to inspire the world through sports, athletes and teams and the greatness that they try to achieve every day. It's also our role to create the most innovative, coveted, beautiful, mind-blowing products and stories. Finally, I really love the word “athlete*” with an asterisk. There's a statement behind that asterisk. “If you have a body, you are an athlete.” It came from our co-founder, Bill Bowerman. It challenges us to serve every human being. All 8 billion people are athletes. I believe what makes Nike great is our unrelenting focus on our athletes, the relationship we have with them, and our ability to take their insights to drive innovation, whether it's products or storytelling. That’s what propels Nike forward. When we put athletes* at the center, we create the right discussions, debate, dialogue, and ultimately arrive at the best decisions — for consumers and our company #nike.#Brand #Strategy #cmoinsights #CMO #Leadership

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1. Brands create a framework that maximizes value for products/services 2. Celebrities start thinking like brands 3. Brands buy stadium rights 4. Celebrities buy stadium rights 5. Celebrities create a framework that maximizes value for stadium rights 6. Brands *should* start thinking like celebrities Fans are going to be way more excited and engaged when they go to Pitbull Stadium vs "insert bank here" stadium... which is going to translate into more value. Any brand that can afford a major naming rights deal does not need "awareness" help, they need relevance help... which is created not by the number of exposures but by..... excitement and engagement. The Jean > Levi's Stadium Globestar Stadium > AT&T Stadium The People's Park > Citizen's Bank Park The Razor > Gillette Stadium The Bullseye > Target Center Taylor Swift Arena > Anything ever Who had "Pitbull rewriting rules of sports sponsorships" on their bingo card? https://lnkd.in/ey8Kfxh4

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Did Direct-To-Consumer Kill the Nike Brand? (well at a minimum damage the brand?) Nike just released earnings. While EPS was above forecast (yes Nike has greatly reduced staff and store count in recent months), the big number... SALES.. missed expectations. (EDIT: it just got worse.... The current CEO skipped the earning call and the forecasted guidance was pulled!) During the pandemic global brands went wild with the Direct-to-Consumer format (DTC). The leaders included Peloton, Allbirds, Warby Parker, ROKA, Mirror, MiniBar, Bombas, RentTheRunway.com the list goes on & on... most of these companies have since gone OOB (out-of-business) or are shells of their former stock (some company stocks are down 95-99%). During the pandemic, Nike made a strategic decision to go DTC, forgoing long-standing partners such as Foot Locker. At first the decision appeared to be the right move as the stock spiked 50%, revenue was booming. It some became clear that sales were pulled forward and Nike leaned too much on legacy product lines without much thought into innovation. Companies such as ON-SHOES, HOKA, Brooks Running, and others grabbed market segments, innovation and retail partnerships. Nike was no longer the 'must have shoe' (all my friends are wearing ON these days TBD). Sales have been falling in a stagnant shoe sector - that is not a good combination for a business. Now Nike has a lot of 'reorganization' to do. A new CEO is being announced, Investor day will be delayed, new designers are being recruited, partnerships are being mended in the retail space. Per CNBC, CEO Donahue stated, The incoming CEO will need to power up Nike’s innovation pipeline, reset its relationships with wholesalers and improve morale after a series of layoffs and a breakdown in culture What will become of a Nike? Probably the same thing that happened to other DTC's from 2021 that are still around. Nike will reform relationships with retailers, deemphasize the company stores (flagship store was already closed in Portland), Nike and other former DTC's will add value to the department stores and end up strengthening product assortments at: Dillard's Inc., Macy's, Nordstrom's - DTC will save the departments stores! (and themselves) https://lnkd.in/g2rRP267

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Lululemon missed Wall Street's sales expectations for the first time in over two years, leading to a reduction in full-year revenue guidance. The company anticipates full-year net revenue between $10.38 billion and $10.48 billion, down from previous estimates of $10.7 billion to $10.8 billion. Comparable sales growth was only 2%, significantly below the anticipated 5.9%, with a notable decline of 3% in the Americas. The company faced challenges with the launch of its Breezethrough leggings, which were pulled from shelves due to customer complaints regarding fit. CEO Calvin McDonald emphasized the importance of customer feedback and indicated plans to reintroduce the fabric in the future. Lululemon's women's business in the U.S. has slowed, attributed to a lack of new styles, impacting sales of bottoms and online performance. The departure of the chief product officer raised concerns about innovation, but McDonald assured that a succession plan was in place. The company appointed Nikki Neuburger as the new chief brand and product activation officer to oversee merchandising and product operations. Despite sales challenges, Lululemon's gross profit increased by 9% to $1.4 billion, with a gross margin of 59.6%, surpassing analyst expectations. International sales surged by 29%, with a focus on growth in China. #lululemons https://lnkd.in/dU4smGRj

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Had an insightful conversation with Shoshy Ciment of Footwear News on the topic of loyalty, resulting in a highly informative article by her. Grateful to have been a small part of this key discussion. Check out the article below to learn more about loyalty programs from Foot Locker, UA, Kith, Naturalizer and more. Link: https://lnkd.in/eXSNTr_K

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This new Nike commercial is a Masterclass in consumer insights and branding. Launched just days after the 2024 marathon season, it is a brilliant example of how the brand is connected to its audience. Sore muscles are a struggle runners face the day after a race. This light-hearted approach to post-race soreness speaks volumes about Nike’s understanding of its consumer. Why It Works: Consumer Insight Successful companies are attuned to the challenges their customers face, and this ad reflects Nike's awareness of their athletes pain points (pun intended). The soreness and exhaustion after a marathon may not be glamorous, but it’s a part of the runner’s journey. By showing this in a relatable and humorous way, Nike taps into an experience that resonates with runners across the globe. The inclusion of the radio dedication, “Hope you’re doing okay out there,” reinforces the feeling of community between runners. Branding Excellence This ad is a part of Nike’s "Winning Isn’t Comfortable" campaign, which emphasizes the brand's philosophy: success requires perseverance and the tenacity to push through. This reflects a key tenet of Nike’s branding—authentically highlighting the grit and determination of athletes*. The ad doesn't sell shoes; it sells a mindset. People want to see themselves in the brands they buy, and this commercial makes the aspirational performance of Nike relatable and attainable. Key Takeaway: This ad is not about promoting performance gear—it’s about showing consumers that Nike understands them, supports them, and celebrates every aspect of their athletic journey. This is the purpose of great branding: being more than a product, and instead, becoming a trusted partner in a consumer’s life. Also, it made me laugh. #Marketing #Nike #Branding #ConsumerInsights #Advertising #Athletics #JustDoIt *if you have a body, you are an athlete https://lnkd.in/gsTgyGDb

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Ironically, Nike's Olympic ad tagline sums up John Donahoe's disappointing tenure at the Swoosh. In less than 5 years, the CEO has authored two significant layoffs, gutted employee morale & spurred Nike's stock price to plummet by over 100 points from its high of 177. Donahoe’s decision to eliminate sport categories, let go of experienced employees, over-index on direct-to-consumer sales & become reliant on consultant strategies has resulted in sluggish sales & a weakened brand. Nike’s product innovation pipeline has dried up & consumers no longer view the brand as cool. Additionally, upstart competitors like On & Hoka have gained market share. Notable female athletes such as Simone Biles, Allyson Felix, Breanna Stewart & Sloane Stephens parted ways with Nike instead of renewing their contracts. In any other company or sports team, a change in leadership would have been made long ago. Donahoe has proven he can’t WIN. Phil Knight & the Nike board have become enablers & must make a CEO change before irreparable damage is done to this once-great company. Shareholders, employees, former employees & consumers deserve better. Just Do It! #nike #lackofleadership #failedceo #justdoit #heavyhittersports

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Sport has a major part to play within the apparel industry, encouraging high levels of consumerism among sports fans. But what actions can be taken to improve the industry’s environmental impact? A few weeks ago I sat down with Martin Foster to discuss all this and more for The Experts in Sport podcast. If you want to learn more about this topic watch out for the 5THREAD podcast where I interview industry experts who are changing the game in sports apparel. #podcast #sport #sustainability https://lnkd.in/e9H6W7rJ

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How did they manage to keep him for 30 years? Absolutely inspired to see Elliott Hill appointed as CEO of Nike after starting his journey as an intern over 30 years ago! 👏 In a world where job hopping is often seen as the best route to career growth and higher salaries, Elliott's story is a testament to the pay off of loyalty and patience. But why did he stay loyal and patience? Firstly it’s Nike, pretty cool 😎 and secondly I truly believe that people will stay with a company for the long haul when they are challenged, have access to continuous professional development, and feel connected to the mission. I expect Nike ticked these boxes. ✅ At LHi Group, we strive to do just that, nurturing talent, offering growth opportunities, and fostering a culture that people are proud to be a part of. Just look at tenure of some of our people. In the right company, success is a marathon, not a sprint. #CareerAdvice #Leadership #ProfessionalDevelopment #Culture #CEO https://lnkd.in/eHRhCBmu

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Nike, once a dominant force in the #sports #apparel industry, has seen its market value plummet by over 50% since its peak in November 2021, dropping from $275 billion to $125 billion. 📉 The significant drop in early June was driven by disappointing quarterly earnings, which revealed not just a decline in profits but also stagnation in top-line growth. 👟 Nike’s Market Shift: From Competing with #Adidas to Facing On and HOKA 🛑 While Nike traditionally competes with brands like adidas and PUMA Group (that have also been struggling to grow), it’s important to recognize that almost two-thirds of Nike’s sales come from footwear. 🎯 This makes Nike more comparable to emerging niche brands like ON and HOKA, which have been gaining market share at Nike’s expense. . 📈 Growth Comparison: ON and HOKA Surging Ahead 🚀 HOKA® saw an impressive 29.7% increase in net sales, reaching $545.2 million in Q1 2024. 📈 ON Holding AG reported a 20.9% rise in net sales, which equates to a 29.2% increase on a constant currency basis. 📉 Meanwhile, Nike's footwear revenue, which makes up the bulk of its sales, declined by 3.63% in the most recent quarter. 💡 Even with Jordan’s growth of 6%, Nike is facing stiff competition from these up-and-coming brands, especially as they continue to gain traction with younger consumers. 🏬 The Impact of Nike Direct on Growth 🔄 Nike’s strategic shift towards direct-to-consumer (DTC) sales, cutting ties with many previous distributors in favor of their own stores and online platforms, has not gone as smoothly as hoped. 📉 While wholesale revenues grew by 5%, Nike Direct revenues fell by 8%, with declines in both online sales (down 10%) and in-store sales (down 2%). 🤔 This shift may have contributed to the brand’s recent struggles, as it attempts to balance control over distribution with the risk of alienating traditional retail partners. 🏆Notwithstanding, #Nike is still by far the leading player in the sports apparel industry, generating over twice the revenue of Adidas, over five times that of Puma, nine times that of Under Armour, and twenty-four times that of On. 💪While Nike may be facing some challenges, the gap between it and its competitors remains substantial. These other brands have a lot of ground to cover before they can pose a serious challenge to Nike's market leadership.

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Alliances between luxury fashion brands and sports can bring about a wide range of advantages for both sectors, namely - 1. Wider Audience Reach: ◇ Collaboration attracts diverse customer bases. Sports brands appeal to athletes and sports enthusiasts, likewise luxury brands attract affluent customers who are interested in high-end fashion. This fusion creates a new profile of customers that appreciate both fashion and sports. 2. Enhanced Brand Image: ◇ Luxury brands can elevate their image by infusing energy and dynamism, repositioning them more relevant in contemporary culture. Sports brands will be able to enhance their prestige and appeal, creating them more desirable in broader lifestyle contexts. 3. Increased Sales Opportunities: ◇ Collaborative merchandises will generate buzz and anticipation, leading to spikes in sales. 'Limited-edition' creates an atmosphere of exclusivity, and urgency to purchase merchandise perceived as unique or collectible. 4. Creativity and Innovation. ◇ Melding of fashion and sports results in innovative product designs. Luxury brands can incorporate functional aspects of sportswear into their high-fashion designs, leading to new styles that stand out in both markets. 5. Marketing and Promotion: ◇ Joint marketing efforts enhances and elevates visibility. Leveraging on each company's marketing channels, e.g. social media, events, and influencer partnerships, reaching wider audiences, and creating more impactful campaigns. 6. Cultural Relevance: ◇ In cultural landscape, 'athleisure' will continue to gain popularity resulting in luxury sports collaborations keeping their brands culturally relevant, tapping into lifestyle trends that gives value, comfort, performance, and aesthetics. 7. Event Sponsorship and Visibility: ◇ These alliances sponsors and participate in high-profile sports events, gaining from media exposure elevating their brand visibility. This association lead to valuable partnerships with athletes serving as brand ambassadors. 8. Elevating Consumer Loyalty: ◇ This unique collaboration creates a sense of community and brand loyalty. Fans of a luxury brand becomes interested in a sport, while sports fans inspired to engage with luxury fashion, building a more interconnected customer base. 9. Sustainability and Ethical Practices: ◇ Sports brands are more focused on performance and functionality, leading to innovative materials and sustainable practices in collaboration with luxury brands, hence appealing to eco-conscious consumers. 10. Limited Edition Appeal: ◇ Alliances produces 'limited-edition' collections that creates an allure of rarity. This drives up perceived value and desirability among customers, as exclusivity is an element of luxury branding.

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As a student of history, I’m always interested in the philosophies of some of the most admired brands, especially during growth periods. In 1980, Phil Knight wrote his 10 core principles for Nike. Although it’s been over 40 years, a lot of these principles still remain prevalent for brands looking to grow. As an athlete, I love the competitiveness that jumps out! My favorite is always on offense. Which ones are most applicable in todays retail environment? This is Fridays reminder to be intentional to grow your brand. #retail #growth #leadership

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