The new boss of Nike has insisted the brand needs to restore its obsession with sport as part of its turnaround efforts.
CEO Elliott Hill, who returned to the sporting giant in October, said the brand had become “too promotional,” and insisted that “being premium also meant full price,” The Times reported.
Speaking to investors on Thursday (19 December), he explained the chain’s website had been offering a 50-50 split of full price and discount items.
It comes after Nike withdrew its full-year forecast after first-quarter revenues plummeted 10% in October.
Nike has faced heavy competition from rivals like Hoka and Adidas in recent times. In July, Adidas reported that it could see its highest profit margin in three years thanks to the success of its Samba and Gazelle shoes and weaker sales at Nike.
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Nike has been accused of focussing too heavily on lifestyle brands and losing influence in sportswear.
Hill said: “We haven’t been maximising our strengths. Moving forward, we will lead with sport and put the athlete at the centre of every decision.”
He added: “The reliance on a handful of sportswear silhouettes is not who we are. We will get back to leveraging deep athlete insights to accelerate innovation, design, product creation and storytelling.”
The executive warned while the retailer’s turnaround plan would have a “negative impact” on its near-term results, he insisted the leadership team were using a long-term approach in order to deliver value for shareholders.
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