Nike has recently announced a potential 1% growth outlook for fiscal year 2024, marking the lowest year-on-year growth since 2010. Despite the challenges, Nike remains firm in its outlook for the year. The company plans to implement $2 billion in cost-cutting measures over the next three years, with much of the initiatives expected to be redirected towards marketing spending. This strategic move is expected to benefit the company in the long run, with Bank of America even upgrading Nike shares from ‘neutral’ to ‘buy’ for the first time in over two years.
The positive market response demonstrates confidence in Nike’s ability to bounce back. In a recent event in Paris, Nike showcased new iterations of its Nike Air sneaker, highlighting the brand’s 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, showcasing the brand’s influence and relevance.
Nike is gearing up for a major marketing push during the upcoming Olympics, taking advantage of relaxed rules from the International Olympic Committee through its Rule 40 pilot programme. Non-sponsor brands like Nike can have a greater presence during the games, including real-time social media engagement. This strategic shift aims to engage younger consumers, drive traffic and increase advertising opportunities for athletes during the Olympics.