Nike Pins Hopes on Olympics to Win Back Market Share

Nike unveiled Olympic kits for the groups it sponsors on Thursday alongside athletes together with Kenyan marathon star Eliud Kipchoge and British sprinter Dina Asher-Smith, betting that high athletes might help it win extra on a regular basis customers.

After an extended stretch of lacklustre gross sales, this summer time’s Olympic Video games in Paris provide a contemporary probability for Nike, to direct the world’s consideration to its efficiency merchandise just like the Alphafly 3 marathon shoe which retails at $285.

In addition to outfitting US athletes throughout all sports activities, Nike will present kits for the athletics groups of Canada, China, Kenya, Germany, and Uganda on the Olympics, basketball for China, France, Japan, and Spain, and athletes in breaking – a brand new breakdancing occasion on the Paris Video games – for Korea.

The high-end footwear Nike will highlight on the Olympics serve a comparatively restricted viewers however the broader objective for Nike is to promote extra entry-level and mid-range trainers, and on Thursday it highlighted its Pegasus shoe vary which retails at between $130 and $160.

Nike spotlighted its “Air” cushioning know-how, utilized in all the things from marathon footwear to sneakers, and its knit supplies that make footwear lighter.

“What we study from our greatest athletes, 10 p.c of the athletes we work with, there’s a trickledown in innovation as a result of we’re centered on ensuring our improvements work throughout physique shapes and working speeds and kinds,” Matt Nurse, vp of Nike’s sport innovation lab, advised Reuters in an interview.

Manufacturers like On Operating, Hoka, and Lululemon are taking market share from Nike, whereas a development away from chunky basketball sneakers and in the direction of low-profile “terrace” footwear just like the Adidas Samba can be hurting the sportswear big.

“There’s positively extra competitors … it’s good to take the heartbeat on what customers are considering and responding to – I simply suppose competitors all the time makes us higher,” stated Nurse.

Nike warned three weeks in the past that its income within the first half of its 2025 monetary yr would shrink and stated it will reduce on orders of established footwear such because the Air Pressure 1 because it tries to deal with new, modern merchandise.

Whereas Nike, with annual income of $51.2 billion within the yr to Might 31, 2023, is far greater than Adidas and Lululemon, analysts at HSBC anticipate its annual gross sales development to lag these manufacturers in 2024, 2025 and 2026.

“They haven’t had a ton of thrilling product innovation lately,” stated Tom Nikic, analyst at Wedbush in New York.

Seeing Olympians break information in Nike gear might assist push extra consumers to the model. “It should stay to be seen whether or not Nike has the robust product to capitalise on the eye it would get,” stated Nikic.

By Helen Reid; Enhancing by Vanessa O’Connell, Sonali Paul and Elaine Hardcastle

Study extra:

JD Sports CEO Blames Nike for Slumping Sales

JD Sports activities Vogue Plc stated sluggish innovation at Nike Inc. contributed to a stoop in gross sales on the UK retail chain as customers look to refresh their wardrobes.