Nike to roll out $100-and-under sneakers after shares suffer biggest plunge

[Orange]

 

Perhaps now’s the perfect time for Nike to “just do it.” To appease growingly budget-conscious shoppers and recapture market share, the sportswear giant is planning a new sneaker line priced at $100 or less. This comes on the heels of the brand experiencing weaker-than-expected sales and a subsequent plunge in its stock price—a staggering 19.8% drop on Friday, June 28.

 

The news also follows a rough quarter for Nike. The company reported a 2% decline in fourth-quarter sales, falling short of analyst expectations. The brand, known for its high-end sneakers like Air Jordans, has additionally seen a slowdown in traffic at its factory outlet stores, which traditionally cater to price-sensitive customers.

 

The coveted Air Jordan 1 sneakers can fetch as much as $200. Meanwhile, rival Adidas offers more affordable options, with their three-striped white and black Samba and multi-colored Gazelle sneakers priced at $100 and $120, respectively

 

Nike’s chief financial officer, Matthew Friend, told investors that the company is “attacking opportunities across price points” and adjusting its product lineup to regain market momentum.

 

This planned pivot comes amid a backdrop of rising inflation and increasing pressure on household budgets. Offering a more affordable option allows Nike to stay competitive and potentially attract new fans who might have previously been priced out of the brand.

 

• https://www.reuters.com/business/retail-consumer/nike-plots-100-and-less-sneakers-lure-price-conscious-shoppers-2024-06-28/ 
• https://www.fastcompany.com/91150550/nike-100-sneaker-line-shares-drop-risk 
• https://www.vcpost.com/articles/127751/20240629/nike-launch-100-sneaker-line-surprise-drop-sales-sends-shares.htm 
• https://www.marketscreener.com/quote/stock/NIKE-INC-13739/news/Nike-plots-100-sneaker-line-as-shares-plunge-in-worst-ever-drop-47269498/ 

 

 

Image: Philipp Berezhnoy | Dreamstime.com