Wall Street Criticizes Nike CEO John Donahoe for Disappointing Performance

Money | June 28, 2024, 2:24 p.m.

Nike CEO John Donahoe faces mounting pressure as Wall Street loses confidence in the company's performance. After a disappointing fiscal year, Nike warned of a 10% sales decline, causing its stock to plummet by 20%. Analysts have raised concerns about management credibility and the need for potential leadership changes. Since Donahoe took over, Nike's stock has underperformed, attributed to issues such as slow wholesale orders, a focus on outdated products, and failing to innovate. The company's direct-selling strategy has alienated key retail partners and loyal customers, leading to a loss of market share to competitors offering fresher styles. As Nike navigates these challenges, it must regain its foothold in the industry, particularly with its core customer base of runners. The future success of the world's largest sportswear company hangs in the balance as it strives to overcome these obstacles and restore investor confidence.