Massimo Giunco

💰 On June 28th, 2024, Nike reported its Q2 financial results, revealing a significant loss of $25 billion in market cap in one day, amounting to $70 billion over 9 months. The company's share price plunged to its lowest since 2018, dropping by 32% since the start of the year, with 130 million shares traded—13 times the daily average. John Donahoe became CEO on January 13th, 2020, initiating a transformation alongside Heidi O’Neill, President of Consumer, Product and Brand. This transformation included eliminating categories, shifting to a Direct-to-Consumer (DTC) led strategy, and adopting a centralized, data-driven digital marketing model. A major reorganization occurred between August 2020 and March 2021. The new strategy led to operational challenges, inventory issues, and market share loss, with inventory levels rising from $6.5 billion on May 31st, 2021, to $10 billion by November 30th, 2022. Gross margin dropped from 46% in FY22 to 43.5% in FY23. Nike reintroduced product categories as "Fields of Play" in December 2023 after disappointing Q2 results.