Blog: Nike's ongoing restructuring
Leonie Barrie | 11 February 2009
Nike is keen to stress that a cull of up to 1,400 jobs is part of a wider restructuring announced a couple of years ago rather than a symptom of the current economic climate.
The realignment will “bring the company closer to consumers, reduce management layers and leverage efficiencies to increase speed-to-market advantages globally,” the company said. And it will include a review of the sportswear giant’s entire supply chain from the sourcing base to the retail footprint.
Although Nike has largely been shielded from the economic slowdown – in December it recorded a 9% increase in second quarter profit to US$391m, boosted by strong performances in Asia Pacific and the Americas – US demand is slowing and profits have been hurt by the strong dollar.
But it is pinning its future growth on a focus on six core categories: running, basketball, football (soccer), women’s fitness, men’s training and sport culture. These areas alone are expected to generate about 75% of the Nike brand’s growth by 2011.
Speculation emerged last week that a group of investors is planning to bid for Adidas Group's Reebok unit, and that a likely sale would enable the German sportswear giant to realign its strategy as a ...
Competition for pole position in the women's sportswear market is about to heat up after Nike this week revealed it has set its sights on growing its women's business by 40% over the next two years....
Experts on China's textile and apparel industry say that international brands must take increasing care to ensure their sourcing is environmentally and socially responsible, ahead of an anticipated ti...
It seems former Men's Wearhouse CEO George Zimmer may be about to show his trump card following his fall-out with the apparel retailer, through the launch of a new company....
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