New Nike boss could consider becoming Big Sneaker

On Holding AG

18/10/2024 14:56

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Saba
       NEW YORK, Oct 18 (Reuters Breakingviews) - The $126 bln
athletic wear maker is struggling with a weak consumer, fashion
missteps and a saturated market. Fresh CEO Elliott Hill can try
and design his way to growth or go big. A tie up with rival
Adidas would consolidate share with the benefit of chunky cost
savings.
    
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    CONTEXT NEWS 
    Nike veteran Elliott Hill replaced on Oct. 14 John Donahoe
as president and chief executive.
    Nike on Oct. 1 reported that revenue for the quarter ending
August fell 10% year-over-year to $11.6 billion. Earnings
dropped 28% to $1 billion.

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Nike falls behind    https://reut.rs/4dBWCUV
Adidas's valuation is signficantly lower than Nike's    https://reut.rs/3Abzrmw
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 (Editing by Lauren Silva Laughlin and Pranav Kiran)
 ((For previous columns by the author, Reuters customers can
click on  SABA/ 
jennifer.saba@thomsonreuters.com))