Latest news with #AirForce1
Yahoo
2 days ago
- Business
- Yahoo
Nike Rounds Out Management Team With New Head of Communications
Nike has reached through the Golden Arches for its next head of communications. On Monday, the sports giant named Michael Gonda, former chief impact officer for North America at McDonald's, to become its executive vice president and chief communications officer. He will assume the position formerly held by KeJuan Wilkins, who left Nike in March, about six months after Elliott Hill became chief executive officer. More from WWD Supreme and Nike Spruce Up Their Air Force 1 With Leopard Print Pony Hair Costume Designer Tanja Caldwell Talks Keisha and Justin's Love for Sneakers and Jordans on Netflix's 'Forever' Is the Dirty Sneaker Trend Washed Up? Wilkins reportedly resigned for personal reasons and Gonda will officially join Nike on July 7 and report to Hill. In this position, Gonda will lead global communications for Nike, overseeing all facets of the communications strategy, including storytelling, corporate and brand reputation, issues management, and employee engagement. He will also become a member of the company's senior leadership team. This rounds out Hill's executive team that will be charged with moving the company forward, according to sources. The leadership team includes Venkatesh Alagirisamy, chief supply chain officer; Thomas Clarke, chief growth initiatives officer; Muge Erdirik Kogan, executive vice president and chief technology officer; Matthew Friend, executive vice president and chief financial officer; Nicole Graham, chief marketing officer; Treasure Heinle, executive vice president and chief human resources officer; Rob Leinwand, executive vice president and chief legal officer; Phil McCartney, executive vice president and chief innovation, design and product officer; Ann Miller, executive vice president of sports marketing; Amy Montagne, president of Nike, and Craig Williams, president of geographies and marketplace. 'Michael is a deeply strategic, emotionally intelligent, purpose-driven leader who understands the power of storytelling to move both brands and people,' said Hill. 'His vision for driving impactful communications, his instinct for building high-performing teams, and his ability to form authentic connections will help Nike amplify the voice of sport and athletes around the world in bold and meaningful ways. I'm confident he's the right leader for us as we put Nike back at the center of sport, and our team is excited for the vision and leadership he brings.' At McDonald's, Gonda also served as chief communications officer, where he was in charge of communications, public affairs, sustainability, community engagement and philanthropy for the company's largest markets. He also served on the global senior leadership team for that company. 'Nike has always been more than a brand — it's a storyteller, a cultural force, and a catalyst for belief,' said Gonda. 'I'm deeply honored to join a company that has shaped how people see themselves and the world around them, and am humbled to help Nike tell the stories that matter, connect even more deeply with athletes and communities, and write the next ambitious chapter with Elliott and this team.' Prior to McDonald's, Gonda held senior leadership positions at Chobani and communications agency Weber Shandwick. He is an avid runner and has lived across the U.S. as well as in Kenya and China. Gonda's appointment is just the latest change at the sports brand. Last week the company said that its head of innovation, John Hoke, would be retiring from his position. Just weeks before that, it said Heidi O'Neill, president of consumer, product and brand, would also be exiting. Hill was lured out of retirement to rejoin Nike last October and has been instrumental in orchestrating massive changes within the organization, ranging from the executive team to distribution and pricing. In the company's third-quarter earnings call in March, Hill was vocal about how Nike needs to be more innovative and also reduce the amount of product available in the market. During the call, he said Nike's new priorities will be centered around five fields of play: running, basketball, football, training and sportswear; three countries: the U.S., China and the U.K., and five cities: New York, Los Angeles, London, Beijing and Shanghai. The company also revealed that it was returning to Amazon after a six-year hiatus and would be raising prices on both footwear and apparel in response to tariffs. These major moves are an answer to criticism that Nike had lost its edge to competitors such as Hoka and On, particularly in the footwear space. While the company is making some progress, there's still a lot of work to do. Net income in the third quarter was $794 million, down 32 percent from $1.2 billion in the year-ago period. Net sales in the period were $11.3 billion, down 9 percent from $12.4 billion, on a reported basis, compared to the prior year. Best of WWD EXCLUSIVE: Maje Names Charlotte Tasset Ferrec CEO Nadja Swarovski Exits Family Company Amid Ongoing Corporate Shakeup Aeffe MD Exits Fashion Group Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Nike Rounds Out Management Team With New Head of Communications
Nike has reached through the Golden Arches for its next head of communications. On Monday, the sports giant named Michael Gonda, former chief impact officer for North America at McDonald's, to become its executive vice president and chief communications officer. He will assume the position formerly held by KeJuan Wilkins, who left Nike in March, about six months after Elliott Hill became chief executive officer. More from WWD Supreme and Nike Spruce Up Their Air Force 1 With Leopard Print Pony Hair Costume Designer Tanja Caldwell Talks Keisha and Justin's Love for Sneakers and Jordans on Netflix's 'Forever' Is the Dirty Sneaker Trend Washed Up? Wilkins reportedly resigned for personal reasons and Gonda will officially join Nike on July 7 and report to Hill. In this position, Gonda will lead global communications for Nike, overseeing all facets of the communications strategy, including storytelling, corporate and brand reputation, issues management, and employee engagement. He will also become a member of the company's senior leadership team. This rounds out Hill's executive team that will be charged with moving the company forward, according to sources. The leadership team includes Venkatesh Alagirisamy, chief supply chain officer; Thomas Clarke, chief growth initiatives officer; Muge Erdirik Kogan, executive vice president and chief technology officer; Matthew Friend, executive vice president and chief financial officer; Nicole Graham, chief marketing officer; Treasure Heinle, executive vice president and chief human resources officer; Rob Leinwand, executive vice president and chief legal officer; Phil McCartney, executive vice president and chief innovation, design and product officer; Ann Miller, executive vice president of sports marketing; Amy Montagne, president of Nike, and Craig Williams, president of geographies and marketplace. 'Michael is a deeply strategic, emotionally intelligent, purpose-driven leader who understands the power of storytelling to move both brands and people,' said Hill. 'His vision for driving impactful communications, his instinct for building high-performing teams, and his ability to form authentic connections will help Nike amplify the voice of sport and athletes around the world in bold and meaningful ways. I'm confident he's the right leader for us as we put Nike back at the center of sport, and our team is excited for the vision and leadership he brings.' At McDonald's, Gonda also served as chief communications officer, where he was in charge of communications, public affairs, sustainability, community engagement and philanthropy for the company's largest markets. He also served on the global senior leadership team for that company. 'Nike has always been more than a brand — it's a storyteller, a cultural force, and a catalyst for belief,' said Gonda. 'I'm deeply honored to join a company that has shaped how people see themselves and the world around them, and am humbled to help Nike tell the stories that matter, connect even more deeply with athletes and communities, and write the next ambitious chapter with Elliott and this team.' Prior to McDonald's, Gonda held senior leadership positions at Chobani and communications agency Weber Shandwick. He is an avid runner and has lived across the U.S. as well as in Kenya and China. Gonda's appointment is just the latest change at the sports brand. Last week the company said that its head of innovation, John Hoke, would be retiring from his position. Just weeks before that, it said Heidi O'Neill, president of consumer, product and brand, would also be exiting. Hill was lured out of retirement to rejoin Nike last October and has been instrumental in orchestrating massive changes within the organization, ranging from the executive team to distribution and pricing. In the company's third-quarter earnings call in March, Hill was vocal about how Nike needs to be more innovative and also reduce the amount of product available in the market. During the call, he said Nike's new priorities will be centered around five fields of play: running, basketball, football, training and sportswear; three countries: the U.S., China and the U.K., and five cities: New York, Los Angeles, London, Beijing and Shanghai. The company also revealed that it was returning to Amazon after a six-year hiatus and would be raising prices on both footwear and apparel in response to tariffs. These major moves are an answer to criticism that Nike had lost its edge to competitors such as Hoka and On, particularly in the footwear space. While the company is making some progress, there's still a lot of work to do. Net income in the third quarter was $794 million, down 32 percent from $1.2 billion in the year-ago period. Net sales in the period were $11.3 billion, down 9 percent from $12.4 billion, on a reported basis, compared to the prior year. Best of WWD EXCLUSIVE: Maje Names Charlotte Tasset Ferrec CEO Nadja Swarovski Exits Family Company Amid Ongoing Corporate Shakeup Aeffe MD Exits Fashion Group Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Nike (NKE) Returns to Amazon to Rekindle Old Fortunes
Nike Inc. (NKE), one of the world's leading footwear brands, has reported year-over-year sales declines for four consecutive quarters, prompting concerns about its long-term growth sustainability. In response, the company announced a two-pronged strategy on May 22: resuming direct sales through Amazon and implementing targeted price increases to enhance profit margins. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter While these initiatives may provide near-term support, I maintain a bearish outlook on Nike's stock, as I believe the current valuation does not fully reflect the key risks the company continues to face. Although I am bearish on Nike, I believe the decision to sell directly on Amazon in the U.S. will help the footwear giant's sales in the short term. A survey conducted by AlixPartners and Footwear Distributors & Retailers of America in 2024 found that more than a third of consumers start their footwear search on Amazon. Nike's return to Amazon is likely to be completed before the end of this month. In line with the partnership terms, Amazon has notified third-party sellers that they will not be allowed to sell certain Nike products, starting on July 19. Over the past five years, many of Nike's direct competitors have maintained a strong presence on Amazon, while Nike's absence from the platform has contributed to market share losses. Looking ahead, Nike's renewed partnership with Amazon should improve its competitive positioning. Selling directly on Amazon also allows Nike greater control over its brand presentation, mitigating the negative impact of third-party sellers who have shaped the brand's image on the platform, often to its detriment. Moreover, leveraging Amazon's extensive U.S. reach—estimated at approximately 230 million active users—could help Nike strengthen its market presence and build a more resilient business profile. That said, investors should be mindful of potential risks associated with this strategy. Chief among them is margin pressure, as Amazon's seller fees could weigh on Nike's profitability. There is also a risk of channel cannibalization; a stronger presence on Amazon could divert traffic away from Nike's e-commerce platform. If that occurs, Nike may lose valuable direct-to-consumer data, which could hinder the effectiveness of its marketing and customer engagement efforts over the long term. As part of its strategy to reignite growth, Nike plans to implement selective price increases across certain product categories. According to multiple media sources, footwear priced above $150 will see a $10 increase, while those in the $100–$150 range will rise by $5. Adult apparel is also expected to see price adjustments ranging from $2 to $10, depending on the retail price. Notably, Nike will exempt several key categories from these hikes, including Air Force 1 sneakers, children's footwear, Michael Jordan-branded apparel, and all items priced under $100. This approach indicates that Nike strategically targets product segments with relatively low price elasticity, where stable sales volumes are likely to sustain revenue growth despite higher prices. The planned price increases appear justified in light of anticipated import cost pressures stemming from new tariffs. The degree to which these hikes will bolster gross margins depends largely on the company's ability to maintain stable sales volumes and the overall economic impact of the tariffs. Nike's gross margins have faced downward pressure in recent years, falling to 41.5% in Q3 FY2025 from 46% in FY2022. Key factors contributing to this decline include increased inventory write-downs, higher discounting to attract customers to Nike's direct-to-consumer channels, such as its website, and rising input costs. In theory, Nike's targeted price increases could enhance gross margins, provided sales volumes remain stable or decline only slightly. However, the implementation of new tariffs presents significant challenges to this strategy. According to UBS estimates, proposed tariffs on imports from Vietnam, which account for nearly half of Nike's footwear production, would necessitate substantially larger price hikes for the company to preserve its gross margin levels. Conversely, Morningstar analysts suggest that raising prices by more than 10% could severely impact sales volumes, making such increases difficult to sustain without compromising demand. On Wall Street, NKE stock carries a Moderate Buy consensus rating based on 14 Buy, 15 Hold, and zero Sell ratings over the past three months. NKE's average stock price target of $76.75 implies approximately 28% upside potential over the next twelve months. Notably, several analysts who have recently expressed caution on Nike's stock appear encouraged by the company's decision to re-enter the Amazon marketplace. For example, Morgan Stanley analyst Alexandra Straton highlighted that direct sales on Amazon represent a clear positive, potentially adding $300 million to $500 million in incremental annual revenue. Similarly, HSBC analyst Erwan Rambourg views Nike's return to Amazon as a favorable catalyst, though he expressed concerns regarding the company's innovation pipeline. Analysts Sam Poser of Williams Trading and Brian Nagel of Oppenheimer also support this strategic move. While Nike's return to Amazon is a positive development, I remain cautious on the stock due to its elevated valuation, with a forward P/E exceeding 28. Although the company's five-year average forward P/E is around 31, this period included above-average growth, such as the 19% year-over-year revenue increase in Fiscal 2021, driven by post-pandemic recovery. Given the recent decline in revenue, I anticipate a potential valuation re-rating in the near term. Nike's decision to resume direct sales on Amazon in the U.S. is a strategic move likely to enhance short-term revenue. However, planned price increases may not translate into margin expansion, as the company faces rising import tariffs alongside the risk of reduced sales volumes. Given its current elevated valuation, Nike offers a limited margin of safety for investors. Disclaimer & DisclosureReport an Issue Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
New York Post
28-05-2025
- Business
- New York Post
Nike ‘quietly' raises prices on top-selling sneakers — but refuses to pin hikes on tariffs
Nike raised prices by as much as $10 on many of its best-selling sneakers – but the struggling sneaker giant refused to blame the spike on tariffs. The Beaverton, Ore.-based company – which produces most of its apparel and sneakers in China and Vietnam – hiked prices on its website by 2% to 6% on popular footwear including Air Max 270, Vomero 5 and Zoom Fly 6, according to a BMO Capital Markets price check released Wednesday. 'Nike has strategically and quietly raised prices on styles they believe can handle price increases,' BMO analyst Simeon Siegel told the Post. 4 Nike's top selling items are $5 to $10 more expensive because of tariffs, experts say. REUTERS 'It's reasonable to assume it's because of tariffs. The way the math works is that a 10% tariff can be offset by a 3% to 5% price increase.' The company, however, refused to attribute the unannounced hikes on President Trump's 10% tariff levied on Vietnam or the 30% tax on China. 'We regularly evaluate our business and make pricing adjustments as part of our seasonal planning,' the company said in a statement last week in response to reports that it would hike prices on June 1. The price increases come despite sagging sales for more than a year, leading the company to lure longtime Nike executive Elliott Hill out of retirement and name him CEO in October to spearhead a turnaround. Hill had spent three decades in various leadership roles before stepping away in 2020. In March, Nike reported a 9% sales decline during the all-crucial holiday season quarter, and forecast a steeper-than-expected drop in fourth-quarter revenue. 4 The Nike Zoom Fly sneaker is among those that cost up to $10 more today. isarescheewin – A source familiar with the company's strategy said Nike is not raising prices on children's products or on items less than $100. Most Nike sneakers that currently cost more than $150 will see increases of up to $10, while footwear priced below $150 will go up by $5, the source said. 'It's rare to see this broad of a price increase,' Siegel said. 4 Nike's price increases started on its web site and could expand to other retailers that sell its merchandise. AFP via Getty Images 4 Other major retailers have warned that they will be increasing prices soon because of tariffs on goods made abroad. REUTERS Some of the company's popular styles remain at their current prices, including the $115 Air Force 1 sneakers, which sell for $115 on the site, according to the BMO report. Apparel like the Indy Sports Bra, NBA jerseys and Sportswear windbreakers also avoided hikes, according to the report. Last week, Nike said it would return to selling its merchandise on Amazon for the first time since 2019 – a move that industry experts viewed as a Hail Mary because of its plummeting sales. Other major retailers, including Walmart, have warned that the levies will force them to raise prices — despite Trump's call for them to 'eat the tariffs.' On Wednesday, Macy's reported that it is cutting its full year profit outlook because of tariffs. The famed department chain also said it would raise prices on 'selective brands and categories.'
Time of India
27-05-2025
- Business
- Time of India
Adidas or Nike? Guess which sneaker brand is increasing its prices from June 1, 2025 amid US tariff pressure
No it's not Adidas! Global sportswear giant Nike is set to raise retail prices across a selection of its products in the US starting Sunday, June 1, as it grapples with rising import costs and geopolitical trade headwinds. Tired of too many ads? go ad free now The company has also announced its return to Amazon after a six-year hiatus, signalling a strategic shift amid softening consumer sentiment. The pricing revision will affect adult apparel and equipment, which will go up by $2 to $10 (approx. ₹167 to ₹835). Footwear priced between $100 and $150 (₹8,350 to ₹12,525) will see a $5 (₹417) hike, while shoes exceeding $150 (₹12,525) could rise by up to $10 (₹835). However, not all products will see a price bump. Nike's iconic Air Force 1 sneakers (currently priced at $155 or ₹12,942), kids' collections, and Jordan-branded merchandise will remain unaffected. Items below $100 (₹8,350) will also retain their current pricing. Why is Nike raising prices? Though Nike hasn't explicitly cited US tariffs as the reason for the hike, the timing is telling. Most of its goods are manufactured in Asia, particularly China and Vietnam, regions now facing a 10% import levy in the US, with more steep tariffs postponed until July. 'Price adjustments are a regular part of our seasonal planning,' Nike said in a statement, while its CFO Matt Friend earlier hinted at navigating 'external uncertainties' such as tariffs and declining consumer confidence. While companies often absorb tariffs initially, they tend to pass on the cost to consumers eventually. Competitors like Adidas and Puma have already issued similar warnings, with Adidas suggesting popular models like the Gazelle and Samba could get costlier in the U.S. Tired of too many ads? go ad free now What does this mean for Indian consumers? Though the price hikes are currently limited to the US, Indian consumers could eventually feel the ripple effects: Imported pricing pressure: Premium Nike products sold in India, particularly limited-edition sneakers and high-end apparel, are often imported from global warehouses, which means global pricing strategy shifts can impact Indian retail tags over time. Currency impact: A strengthening US dollar against the Indian rupee (currently hovering around ₹83.5 to $1) could further amplify retail prices of international brands in India, especially those that don't manufacture locally. Luxury and streetwear crossover: As India's luxury fashion and sneaker culture grows, international pricing adjustments like this can reshape local resale markets, especially for cult favourites like Jordans and Air Force 1s. Amazon re-entry strategy: Nike's return to Amazon US might rekindle interest in strengthening its e-commerce partnerships globally. Indian buyers could potentially see greater online availability of select Nike products, although whether that translates to better pricing remains uncertain. Retailer's tightrope By excluding kids' products and budget-friendly items, Nike seems to be cushioning the blow for price-sensitive segments. At the same time, its return to Amazon - a move away from its prior direct-to-consumer only stance, shows a more flexible, consumer-focused approach. Globally, companies like JD Sports and Puma have voiced concern that higher prices could dampen demand, especially in price-sensitive markets. For Indian retailers and consumers, these developments underscore a volatile pricing environment, where global trade, politics, and inflation intersect with your favourite pair of sneakers.
