Nike to launch cheaper trainer line after weaker than expected sales
Nike is planning to roll out a new trainer line that will retail for £79 ($100) and under in countries around the world, according to Reuters.
The move comes as the sportswear giant looks to get sales "back on track" following weaker than expected fourth quarter sales that saw Nike shares slump on Friday - ending the day down 19.98% and described as "the biggest one-day percentage drop in the stock’s history".
Competition in the market has been coming thick and fast from the likes of brands such as On and Hoka, while Adidas has been successfully raiding its archives and re-releasing styles such as the ‘Samba’ in recent times.
A pair of Nike Air Jordan ‘low’ currently retails at £119.99, while the ‘mid’ version is £129.99 and the leather Nike Cortez – famously worn by Tom Hanks in the 1994 film ‘Forrest Gump’ – is selling between £90 - £100, so a shift to styles priced at £79 and under would be significant.
Nike CFO, Matthew Friend, reportedly told investors last Thursday: "Our teams are also attacking opportunities across price points."
The business lowered its outlook last week after reporting a 1% drop in revenue to $51.4 billion for the full-year ending 31 May 2024.
The sportswear giant saw revenue for the Nike brand rise 1% to $49.3 billion. Meanwhile, revenue for Converse dropped 14% to $2.1 billion.
John Donahoe, President and CEO of Nike, said: "We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike's future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace.
"I'm confident that our teams are lining up our competitive advantages to create greater impact for our business."
