NKE-NIKE INC

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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