In late June, Nike experienced its largest one-day share price decline on record, despite the emergence of other brands that are gaining market share.
Market capitalization fell by an astounding $28 billion (£21.6 billion) overnight when the company’s management revealed that a decline in sales was anticipated in the first half of 2025.
With the greatest market share, Nike continues to be the world’s largest sports store. Analysts claim that the company’s declining fortunes are a result of strategic decisions made at the boardroom level, together with customer concerns and the entry of new competitors.
Change in tactics.
When John Donahoe joined Nike as CEO in January 2020, his main responsibility was modernizing the company’s online presence and increasing digital income.
After joining Nike from eBay, one of the largest e-commerce companies globally, Mr. Donahoe, 64, immediately started directing the company’s attention away from the high street and toward its digital sales initiatives.
The COVID pandemic struck shortly after, forcing buyers everywhere to purchase online whether they liked it or not.
