Elliott Hill was hailed as a hero inside Nike headquarters when the company announced his appointment as chief executive in September. Since then, we haven’t heard much from the man; he’s said little publicly to flesh out his plans for the brand. In an October interview posted on Nike’s website, Hill spent nearly as much time describing his favourite workout outfit (layered Dri-FIT tops and track pants with zip pockets, in case you were wondering) as his turnaround plan (”get back to a sharp focus on the consumer. Understand the areas where we need to improve, put leaders and teams in place against those opportunities, and hold each other accountable for delivering.”)
That will almost certainly change on Thursday, when Nike reports third-quarter results, the company’s first since Hill formally took the top job in October. On an earnings call scheduled for after the market closes, analysts will pepper Hill with questions looking for more visibility on how he plans to reverse sliding sales, and how long it will take for his plan to show results.
There’s little evidence of a turnaround so far (though to be fair, the company hasn’t promised a quick fix, either). Nike appears focused on reducing its inventory of classic retreads, which once drove growth but many consumers are now ignoring in favour of fresher retro takes from Adidas, or newer brands like Hoka and On. The company also shut down RTFKT, the virtual-sneaker creator acquired by Hill’s predecessor, John Donahoe, in 2021, perhaps the clearest signal yet of a “back to basics” approach.
Last quarter, Nike withdrew its sales guidance for its current fiscal year and postponed an investor day meant to showcase its recovery plan. Analysts are expecting a year-on-year sales decline of 9 percent in the current quarter.
Nike’s stock reflects the lingering uncertainty around how the company will pull out of its swoon. Shares trade slightly below where they did after Hill’s appointment was announced. Investors still betting the stock will rebound may be doing so as much out of FOMO — fear of missing out — as any specific thesis about how Hill will get sales growing again, UBS analysts noted last week.
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