April 18, 2024

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Nike criticizes JD Sports – blaming it for declining sales

Nike criticizes JD Sports – blaming it for declining sales

Ha Nike He pointed to the decline in sales of the British retail chain JD Sports, Regis Schultz, CEO, according to Bloomberg.

Schultz reported that like-for-like sales were down significantly 3.1% During the last quarter of 2023, although he expects a recovery in the coming months due to the Football League and the Paris Olympics.

Asked by analysts about JD Sports' relationship with Nike — which also reported last week that sales were down — Schultz He blamed an alleged lack of innovation From the sportswear brand.

Nike has been very successful, however Stop bringing new things, He said. “At the same time, Adidas is doing very well, as it is New balance».

The CEO went on to say that consumers get bored quickly and are looking for “fresher” suggestions to update their wardrobe by switching brands. He added: “If you don't bring new things, a new product, a new innovation, a new color, I think demand will suffer.”

Amid declining sales, Nike is trying to cut costs while investing in higher priority areas such as Being. It is worth noting that in February, the company laid off 2% of its global workforce. The US sportswear company, which makes the popular Air Jordan shoe line, is estimated to account for half of JD Sports' worldwide sales, according to a note by Jay Lawson Jones, an equity analyst at Hargreaves Lansdown.

“JD's future remains inextricably linked to Nike's success,” Lawson-Jones said. “Their close relationship provides exclusive products and competitive prices that entice consumers, and on the other hand creates the company's dependency on the sportswear brand.”

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