---
title: Nike looks to clear some hurdles and hit its stride
description: Navigating a new era in sneakers may not be as easy as “just doing it.”
---

[Hustle News ](https://hs-sbup.thehustle.co/news)

# [Nike looks to clear some hurdles and hit its stride](https://hs-sbup.thehustle.co/news/nike-looks-to-clear-some-hurdles-and-hit-its-stride)

 Written by [Jacob Cohen](https://hs-sbup.thehustle.co/news/author/jacob-cohen) | Jul 12, 2023 12:34:08 AM

In one sense, the Nike brand feels strong as ever. We’re watching movies about Air Jordan’s origin story; revenue in fiscal 2023, up 10% to $51.2B, passed the $50B mark for the first time.

But dig deeper and you’ll see a sneaker behemoth trying to find its footing.

#### **Nike’s new balance sheet**

In 2020, Air Jordan 1 Highs were reselling for a 61% premium and Nike’s stock was standing tall. Today, those Jordans are being discounted and the stock is down ~40% from its peak.

Net income [fell 16%](https://www.cnbc.com/2023/06/29/nike-nke-earnings-q4-2023.html) in fiscal 2023, and margins fell slightly as input costs rose. The company’s 2024 outlook came in lower than hoped. Fewer Wall Street analysts are recommending the stock, per [*Bloomberg*](https://www.bloomberg.com/opinion/articles/2023-07-03/the-sneaker-bubble-is-bursting-around-nike?sref=3Ac2yX40).

One challenge: managing and maximizing Nike’s $8.5B worth of inventory, up 23% from 2021.

#### **Sole mates**

Another challenge is the continued onslaught of ugly European sneakers.

- Hoka — acquired by Deckers Brands, owner of Ugg and Teva, in 2012 for a [reported](https://www.bloomberg.com/opinion/articles/2023-07-03/the-sneaker-bubble-is-bursting-around-nike?sref=3Ac2yX40) $1.1m — now generates $1.4B annually.
- Ski boot maker-turned-trendy footwear brand Salomon led the [2022 list](https://stockx.com/about/sx-market-insights/big-facts-current-culture-index-2023/) of fastest-growing brands on StockX, up ~2.3k%. Hoka came in second, up 713%.
- Swiss brand On grew revenue [69%](https://www.sportico.com/business/commerce/2023/on-running-2022-q4-earnings-1234716784/) last year to $1.3B and expects to hit $1.8B+ this year.

**Changes afoot: **Nike restructured its executive suite in May to “deliver breakthrough innovation,” so a new era of ambitious Nike products may soon be upon us.

[View full post](https://hs-sbup.thehustle.co/news/nike-looks-to-clear-some-hurdles-and-hit-its-stride)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Jacob Cohen"
  },
  "dateModified" : "2023-10-11T19:17:55.548Z",
  "datePublished" : "2023-07-12T00:34:08Z",
  "headline" : "Nike looks to clear some hurdles and hit its stride",
  "image" : {
    "@type" : "ImageObject",
    "height" : 892,
    "url" : "https://7355427.fs1.hubspotusercontent-na1.net/hubfs/7355427/The%20Hustle%20News/Assets/Images/76411467-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-Nike_20230711001823.webp",
    "width" : 1200
  },
  "mainEntityOfPage" : "https://hs-sbup.thehustle.co/news/nike-looks-to-clear-some-hurdles-and-hit-its-stride",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "Hustle News"
  }
}
```