Nike Gives Investors Reason to Be Optimistic

Nike is undergoing strategic changes, including management shifts and a 2% workforce reduction, to improve long-term margins. In the short term, the focus remains on top-line growth. Nike faces competition from Adidas, which is performing well with its classic sneakers. Nike is responding by reducing inventory and leveraging its strength in basketball. Additionally, Nike has partnered with Amazon to sell products online, aiming to control its brand and sales more effectively. This move is crucial as wholesale business shrinks, and digital sales become more significant.

What is one of the strategic changes Nike is implementing to improve its long-term margins?

• Expanding its divisions from four to six

• Focusing solely on short-term profits

• Increasing its workforce by 2%

• Reducing its workforce by 2%

How is Nike addressing the competition from Adidas?

• By increasing its inventory

• By reducing its inventory by 25%

• By focusing on new product lines

• By exiting the basketball category

In which category does Nike maintain a strong market position despite competition?

• Basketball

• Formal shoes

• Running shoes

• Casual wear

What is a key benefit of Nike's partnership with Amazon?

• It allows Nike to sell through third-party vendors

• It enables Nike to control its brand and sales directly

• It helps Nike reduce its digital presence

• It focuses on increasing wholesale business

Why is the Amazon partnership important for Nike's future growth?

• Because wholesale is a growing business for Nike

• Because it limits Nike's market reach

• Because it provides a new growth avenue as wholesale shrinks

• Because it reduces Nike's digital sales