Sportswear giant Nike’s newly appointed CEO and President, Eliot Hill has taken the charge of planning a turnaround plan for the brand in just two months into the role. Hill has conveyed to the investors that he will change the outlook of the struggling sportswear brand, according to reports.
As Nike faces the dread of declining sales, increased competition, and a loss of market share, investors and analysts alike are eagerly awaiting his plans to revitalise the brand. Additionally, the company has also marked challenges with dropping consumer demand, particularly among younger demographics.
Nike’s sales among its retailers including Walmart, Target, Foot Locker, and Dick’s Sporting Goods witnessed a 7 per cent drop from the previous year’s corresponding quarter, a Reuters report revealed. The retail store sales at Nike also dropped by 7 per cent during the same span of time. The company also had to make cost cuttings and lay off 2 per cent of its 80,000 workers.
Eliot Hill is a veteran with a long-standing experience of being with Nike from the very start as an intern in 1988, until he retired in 2020. Nike then re-instated the veteran as the new CEO and President of Nike in September. Hill has since taken charge to turning the brand’s dropping performance into the successful state it once had.
While the company has taken steps to address these challenges, including layoffs and cost-cutting measures, the road to recovery is likely to be long and arduous. Analysts believe that Hill’s ability to execute a comprehensive turnaround plan will be critical to Nike’s future success.
