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Nike Faces Revenue Challenges but Gains Momentum with SKIMS Collaboration to Boost Women's Activewear Market
Thursday
20 February, 2025
As Nike navigates a challenging revenue landscape, its collaboration with SKIMS aims to redefine women's activewear and boost brand appeal. Can this strategic pivot and focus on inclusivity truly turn the tide for a company facing significant market scrutiny?
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Key Takeaways
- Nike's stock has dropped 58% since late 2021 due to reduced demand and stagnant revenue.
- Analysts predict a further 10% revenue decline for fiscal 2025, indicating ongoing struggles.
- Direct-to-consumer sales are weak, leading to increased dependence on wholesale channels, which may not be viable.
- Citigroup's downgrade raises concerns about achieving sales goals and necessitates higher marketing spending.
- New initiatives face skepticism as Nike contends with intense competition and market difficulties.
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