Nike's Struggle with Direct-to-Consumer and Market Share

Nike, known for its strong brand and history of innovation, made a significant shift to direct-to-consumer sales, attracting top talent and investing heavily. However, after facing challenges post-COVID, including losing shelf space due to overinvestment, competition from brands like Hoka and On Running, and struggling in the Chinese market, they have encountered a decline in market capitalization and stock value. With a 30% decrease in stock value year-to-date while competitors like Adidas are thriving, analysts predict potential leadership changes at Nike due to the company's underperformance compared to historical averages and the market.