The first shoe has dropped at Nike Inc. Last week, new chief executive officer Elliott Hill set out his vision for turning around the American maker of sneakers whose 'swoosh' brand logo is globally recognized and "Just do it" slogan remains among the most memorable for significant numbers. The world's biggest sportswear company has lost out to rivals after it prioritized selling through its own stores and website, and did not deliver enough new products, relying instead on classic styles.
Hill warned that his efforts would be painful in the short term, with sales and margins in the current fiscal quarter expected to fall more sharply than in the previous three months. But he stopped short of getting all the bad news out of the way early, for example by writing off those out-of-fashion sneakers and lowering sales and earnings expectations for the coming years.
That looks like a missed opportunity, and it means the continued threat of a reset as Nike embarks on the difficult task of winning once more.
It has been obvious for some time what Nike should do. And Hill set out a plan to just do it.
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