Nike Slides Towards Disaster as Stock Plummets Following Woke Rebrand

Nike is sliding towards disaster as its stock slumps to its lowest level in a decade and sales are forecast to continue to decline following a woke rebrand that sent customers looking elsewhere. The Mail has the story.

Nike’s stock has slumped to its lowest level in more than a decade after the sportswear giant warned sales will keep falling through 2026. 

Shares hit an 11-year low on April 1st, capping a brutal stretch that has seen the company lose around 75% of its value since shares peaked in 2021. 

It is now worth under $68 billion – a third of the value of TJ Maxx. 

The latest sell-off was triggered by a bleak outlook, with Nike forecasting sales will slump 4% this quarter – a staggering $500 million fall in the value of shoes, tracksuits and t-shirts. 

The brand is being hit by a triple whammy: backlash to its more ‘woke’ image shift, a failed retreat from major retail partners in favor of direct-to-consumer selling, and a deepening slump in China. 

The scale of the pressure inside Nike was laid bare in a recent all-hands meeting, where CEO Elliott Hill struck an unusually blunt tone with staff in a recording leaked to Bloomberg News.

“I’m so tired, and I know you are, too, of talking about fixing this business,” Hill said during the meeting. “I want to move to inspiring and driving growth and having fun.”

“You can’t just sit there and say everything’s great,” Hill said, referring to the investor call. “Frankly it needed to be different.”

For years, conservatives have criticised Nike for a shift toward ‘woke’ culture, pointing to partnerships with political activists such as Colin Kaepernick, who protested during the national anthem. The company also faced backlash over its company’s all-female Super Bowl ad. 

 Meanwhile, a major strategic bet has backfired. Under former CEO John Donahoe, Nike pulled back from wholesale partners such as Foot Locker and Dick’s Sporting Goods as it chased higher-margin sales through its own stores and website.

The move was meant to boost margins – but instead cost Nike shelf space and allowed rivals including Adidas, Hoka and On to gain ground. 

And overseas, the picture is getting worse. China, Nike’s second-largest market, is expected to post another sharp decline, with sales projected to fall 20% next quarter after already dropping 11% in the latest period. 

Worth reading in full.

All together now: go woke, go…