Nike's new CEO "Overdue Discount"...Shall we take back the glory?

The new CEO of Nike, the world's largest sports brand suffering from poor performance, has criticized the excessive discount policy and emphasized its premium strategy.CEO Elliott Hill, who took over as Nike's head coach in October, said during his first earnings meeting since taking office that he was prioritizing rebuilding partnerships with retailers and refraining from discounts and promotions, according to Reuters.

Nike fired CEO John Donaho in September and named Hill, who has worked at Nike for 32 years, as its new CEO.

"We have been promoting excessively (discounts, promotions, etc.), and the level of price cuts has not only affected our brand, but also hindered the overall market and the profits of our partners," Hill said.

"Some measures will negatively affect short-term performance, but we have a long-term perspective," he explained.

It also said it would strengthen reinvestment in local sports teams in major countries and cities to strengthen sports-related marketing.

"We've lost our obsession with sports," Hill said, stressing that "it's not like us to rely on some sports apparel silhouettes."

Nike said in an earnings call that its net sales in the second quarter (September-November) were down 7.7% year-on-year to $12.35 billion (about 17.9 trillion won).

This is better than a 9.41% decrease in the market forecast.