Nike (NKE) inventory is in focus after the athletic firm announced quarterly results and provided insights into new CEO Elliott Hill’s turnaround plan.
Resale market, StockX, chief working officer and incoming CEO Greg Schwartz joins Wealth with Alexandra Canal to debate how Nike is promoting within the secondary market and what the management change means for resellers.
We predict a turnaround is required, and I believe Elliott’s saying the proper issues,” Schwartz says, including, “It is time that they flip a nook. What we have seen can be a multiyear cycle of oversupplying product, particularly silhouettes like Dunks, Air Pressure Ones, [and] Jordan Ones.”
The StockX government explains, “Oversupplying results in heavy discounting and, frankly, only a lack of name cachet, and so if you see that, if you see actually a scarcity of innovation, it is time for a change.”
“We have seen Nike’s market share drop double digits on StockX, and [it’s] nonetheless a really massive, nonetheless a robust model on our platform, however actually that is opened up the doorways for incumbent manufacturers. Puma, Asics, New Stability, [and] Adidas have been taking increasingly more share and changing into increasingly more prevalent on the platform.” He provides that Hoka and ON have benefited from Nike’s challenges on the resale platform.
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This publish was written by Naomi Buchanan.
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