Nike recently announced that it expects a potential 1% growth outlook for fiscal year 2024, which is lower than its previous projections. Despite the challenges, the company remains optimistic about its prospects for the year.
To address these challenges, Nike plans to implement $2 billion in cost-cutting measures over the next three years. Much of these initiatives will likely be redirected towards marketing spending, with a renewed focus on innovation. This strategic move has been well-received by analysts, who believe that it will benefit Nike in the long run. In fact, Bank of America recently upgraded Nike shares from ‘neutral’ to ‘buy’ for the first time in over two years, indicating confidence in the company’s ability to recover.
At a recent event in Paris, Nike showcased new iterations of its Nike Air sneaker, emphasizing its commitment to innovation. The unveiling included new models for athletes at the Olympics, a consumer model set to launch in 2025, and an AI-generated version co-created with athletes. Nike’s rich history and cultural collaborations were also on display, highlighting its influence and relevance.
As part of its marketing push during the upcoming Olympics, Nike is taking advantage of relaxed rules from the International Olympic Committee through the Rule 40 pilot programme. This strategic shift aims to engage younger consumers, drive traffic and increase advertising opportunities for athletes during the games.