George Minakakis’ Post

Following a week of high profile chief executive departures at Under Armour, Brooks Running and Allbirds — all for different reasons — some analysts are speculating whether Nike could be slated for a change at the top, given the company’s recent product and marketplace headwinds. Last quarter, Nike announced new measures to “streamline” its organization to save up to $2 billion in costs over the next three years by implementing layoffs, simplifying product and increasing automation. At the time, the Swoosh reported that North America revenues were down 3 percent in Q2, with wholesale sales in the region down 9 percent.

Attention Board Members. How much is your Zero-sum leadership team costing your Company's shareholders? Nike Inc.'s recent announcement can be analyzed through the lenses of infinity-sum and zero-sum thinking. ### Zero-Sum Thinking: - **Definition**: In zero-sum thinking, one party's gain is perceived as another party's loss. This mindset is often competitive and adversarial. - **Application to Nike**: When Nike initially decided to pull products from many retail stores in favor of its own shops, e-commerce, and apps, it could be viewed as a zero-sum approach. The decision likely resulted in a significant loss for retailers such as Foot Locker Inc., as they lost a substantial portion of their product inventory and potential sales. This competitive move prioritized Nike’s direct sales channels at the expense of its retail partners. ### Infinity-Sum Thinking: - **Definition**: Infinity-sum thinking, often referred to as win-win thinking, focuses on creating value for all parties involved. This mindset seeks collaborative and mutually beneficial solutions. - **Application to Nike**: The rehiring of Tom Peddie to oversee retail partnerships signifies a shift towards infinity-sum thinking. By rebuilding relationships with retailers and aiming to improve capabilities in their wholesale business, Nike is working towards creating value for both itself and its retail partners. This approach aims to foster a collaborative environment where both Nike and its retailers can thrive, thereby potentially increasing overall market growth and customer satisfaction. ### Comparison of Executives: - **John Donahoe**: As the current CEO who spearheaded the shift towards Nike's own direct sales channels, Donahoe's strategy reflects a zero-sum approach. This strategy led to strained relationships with retail partners and a decline in sales, as evidenced by Nike's stock drop. - **Tom Peddie**: His rehiring and role in rebuilding retail partnerships represent a move towards infinity-sum thinking. Peddie's experience and leadership are expected to mend and enhance relationships with retailers, suggesting a strategy that seeks mutual growth and benefits. ### Conclusion: Nike’s initial move under John Donahoe’s leadership can be seen as zero-sum thinking, focusing on Nike's direct sales gain at the expense of retail partners. The return of Tom Peddie, with an emphasis on rebuilding and strengthening retail partnerships, marks a strategic shift towards infinity-sum thinking, aiming for a collaborative approach that benefits both Nike and its retail partners. Disclaimer: The Infinity-sum vs. Zero-sum analysis was augmented by ChatGPT4o. Critical thinking should be applied. The original source article is here: https://lnkd.in/e3C7_Avc

So Nike CEO, John Donahue is stepping down next month. The recent slowing of financial performance, coupled with growing criticism of a lack of product innovation has compounded this step. For a number of years I have been one of many people within retail increasingly disappointed and frustrated by the store experience around the world too. Once my benchmark for retail excellence, Nike has consistently under delivered with bland messaging, predictable merchandising and a shift in attitude by store staff. Four years ago, I wrote a 78 page report, analysing the brands retail strategy. It was a joy to delve into their store formats, social media strategy and approach to delighting customers. This report launched my consulting career, but I wouldn't be able to write that analysis today. It saddens me when I look around stores so sparse, you wonder if the VM team has visited yet. I have been kicked out of stores for taking photos, when for years, I was encouraged to capture and share the latest concepts. Watching staff shout at teenagers who were playing keepie-uppie with a ball...when just a year before I watched staff join in with kids doing the same thing. I sincerely hope the new CEO remembers and returns to the energy, attention to detail and clear understanding of what customers want. This iconic brand deserves better. Just Do It. #RetailExcellence #BrandStrategy #ISRC https://lnkd.in/eJzMUsfu

I’m happy to share that I’ve obtained a new certification: lululemon - Merchandising Job Simulation from Forage! In the simulation I: 1. Completed a job simulation where I assisted the lululemon merchandising team in planning for inventory of lululemon's shorts capsule.  2. Created a pivot table to display $ and units of lululemon Shorts shipped across the globe and in key regions. Summarized these findings to assist with inventory management and financial planning. 3. Created a line sheet for the Spring 2022 shorts capsule at lululemon and summarized the SKU count for all channels. 4. Checked sales from the previous day and compared metrics against prior sales and calculated full-price sell-through to assist with real-time decisions to appropriately manage lululemon's inventory. 5. Evaluated lululemon's two major competitors’ product-type business strategies by analyzing each brand, ranking their product categories and reviewing the assortment, color stories, marketing, and promotions they offer. I then summarized my findings for my manager. Check out the simulation here: https://lnkd.in/gHTTrxSd #merchandising #lululemon #forage

Why lululemon fell below $300 per share? 1. Sun Choe resigned from her position as Chief Product Officer at lululemon athletica inc. effective June 21, 2024. 2. The company announced an updated and more integrated organizational structure, which includes elevating Jonathan Cheung, Global Creative Director, to drive the product design and innovation roadmap. 3. The company will create a new team comprised of leaders from its Merchandising and Brand functions to scale its global and regional go-to-market strategies. 4. Nikki Neuburger will become the Chief Brand & Product Activation Officer, overseeing Merchandising, Footwear, and Product Operations, in addition to her current responsibilities leading Brand. 5. The company does not intend to replace the role of Chief Product Officer. Conclusion: When innovation is key to a company’s success such a departure is always something to consider. However, I feel that the market is overreacting and takes any news as terrible news! Not a financial advice. What are your thoughts? 💭 Calvin McDonald #stocks #marketnews #athleisure #investing #stockopine

Corporate Tracker report for @DICK's Sporting Goods : DICK's Sporting Goods continues to demonstrate strong financial performance with consistent sales growth, improved profitability, and a solid cash position. The company's strategic expansion through innovative retail formats like House of Sport and Field House, coupled with enhanced digital capabilities, positions it well in the evolving retail landscape. However, DICK's faces challenges including slowing sales growth rates, rising inventory levels, and limited international exposure. Opportunities lie in capitalizing on health and wellness trends, expanding into new markets, and leveraging e-commerce growth. The company must navigate threats from intensifying competition, economic uncertainties, and shifting consumer preferences. DICK's ability to innovate, manage inventory effectively, and adapt to market changes will be crucial for sustaining its growth trajectory in the dynamic sporting goods industry.

DICK'S Sporting Goods kicked off the year with net sales of more than $3 billion in Q1, an increase of 6.2%, according to a company press release. Comparable sales in the quarter grew 5.3%, on top of 3.6% growth the year prior. Net income fell 9.6%, but still came in at $275 million. The retailer opened two House of Sport stores in the quarter, for a total of 14, and plans to open six more of the experiential format in the year to come, CEO Lauren Hobart said on a call with analysts.  Thanks to the strong results, Dick’s already raised its comps outlook for the year and now expects growth between 2% and 3%, up from 1% to 2% previously. Net sales for the year are expected to fall between $13.1 billion and $13.2 billion.

There are two companies that I have said numerous times that you cannot bet against, Walmart and Nike. Nike's business has been a bit of a rollercoaster that past several years including a change at the top. Elliott Hill was brought back to the company as CEO several months ago. Reports indicate that a full on "turnaround" has started within the company. "Ripping off the band aid" was one quote used. Several key Nike partners are already picking up on these changes. In the last few weeks, Foot Locker, Academy Sports + Outdoors, Designer Brands Inc. and JD Sports Fashion have all called out the Swoosh during calls with analysts discussing their most recent earnings results. In many cases, the chains lauded their Nike relationships and said they were looking to increase the amount of product they receive from the brand moving forward. Competition from recent upstarts On, HOKA, Brooks Running and the longtime foes adidas and Under Armour creates additional challenges for Nike. The benefactors of the intense competition are all of us consumers. Interesting times ahead for certain! #retail #retailnews #retailtrends #dtc #dtcbrands #sneakers #sneakernews #running #athleisure #turnaround #cre #outlets https://lnkd.in/e_2nmaui

Sporting goods retailer DICK'S Sporting Goods continues to thrive... ... despite other retail favorites like lululemon, Under Armour and Nike experiencing tough quarters. How? According to CEO Lauren Hobart, as reported by Cara Salpini at Retail Dive, Dick’s strength can be attributed to "its long-term strategy of building a differentiated assortment, improving customer experience and investing in stores." ➡ Upgraded stores ➡ Relevant product assortments ➡ Greater focus on better customer experiences That's how forward-thinking brick-and-mortar retailers win the hearts, minds, and wallets of today's shoppers. And if you're a multi-unit retailer that wants to do the same, we can help! Send us a DM, or visit ORforMore.com. #BrickAndMortar #Retail #Store #Assortment #CustomerExperience P.S. Learn more about how Dick's Sporting Goods is winning by checking out Retail Dive's article: https://lnkd.in/gvEA46Yi

Some interesting news in the #apparel and #retail news this week: 1. As fashion’s interest in sports grows, brands are getting a crash course in the complicated world of sports sponsorships. Just this week, Skechers signed its first WNBA player, Rickea Jackson, and Miami Dolphins wide receiver Odell Beckham Jr. launched a loungewear campaign with lululemon. Tennis superstar Roger Federer, Olympic gymnast Simone Biles and American tennis player Taylor Fritz have all split from Nike in recent years. 2. In a significant development at the intersection of agriculture and fashion, seaweed is emerging as a potential game-changer in addressing two of the industry's most pressing environmental concerns: sustainable material sourcing and livestock emissions reduction. 3. HUGO BOSS confirms 42% drop in Q2 operating profit. They said its earnings before interest and tax (EBIT) fell to €70 million ($75.8 million) in the second quarter, from €121 million a year earlier, as reported last month. 4. Blake Lively Launches Hair Care Line. The line of shampoos, conditioners and hair masks, called Blake Brown, will launch Aug. 4, exclusively at the US retailer Target. 5. Department store group Fenwick has appointed a new chief executive as it prepares for the next business phase, Retail Week can reveal. Fenwick has drafted in department stores veteran Nigel Blow to the role, succeeding John Edgar who has left after almost five years in charge. #retail #apparel #olympics