By Mark Wyatt, Money blog reporter
The trainer market is now more diverse and competitive than ever before, and its biggest player has felt the pinch.
While new brands have been popping up and taking market share, Nike suffered its biggest single day drop in share price on record in late June.
A whopping $28bn (£21.6bn) was shaved off in market capitalisation overnight after the company’s management reported an expected sale drop in early 2025.
But why has this happened?
Nike remains the largest sports retailer in the world and still has the biggest slice of market share. However, analysts say strategic decisions at boardroom level have contributed to a downturn in its fortunes – with consumer concerns and the emergence of new competition also in play.
Shift in strategy
John Donahoe became Nike’s new CEO in January 2020 and was tasked with updating the company’s online operation and bringing in more digital revenue.
Mr Donahoe arrived from one of the world’s biggest ecommerce companies, eBay, and quickly began shifting Nike’s focus towards its digital sales efforts and away from the high street.
Shortly after, the COVID pandemic hit, and the world’s shoppers were forced online whether they liked it or not.
With people not going into offices to work, there was no need to buy smart, formal footwear. Comfortable, everyday shoe sales rose, and Nike’s profits surged past projections.
Everything looked to be going well, so Mr Donahoe doubled down,…
