Nike promises ‘bigger, bolder brand storytelling’ to combat sales dip
Following a difficult first quarter, Nike is shifting focus to reconnect with consumers through sport, admitting a “comeback at this scale takes time”.
Nike plans to invest in “bigger, bolder brand storytelling” and “re-energise brand momentum through sport”, after posting weaker first quarter sales results.
In a call with investors yesterday (1 October), CFO Matthew Friend explained the company plans to move “aggressively” to shift its product portfolio, in a bid to “create better balance” in the business.
The sportswear giant’s first quarter revenue for the three months ending 31 August fell by 10% to $11.6bn (£8.7bn), with direct-to-consumer sales down 13% to $4.7bn (£3.5bn). Nike store sales rose by 1%.
Friend explained Nike has been “intentionally reducing” the proportion of the business driven by its footwear franchises Air Force 1, Air Jordan 1 and Dunk, leading to a drop in Q1 revenue from these businesses. The company anticipates the same rate of decline in these franchises throughout the year.