Nike promises better data usage in light of declining digital sales

Nike promises better data usage in light of declining digital sales
Nike promises better data usage in light of declining digital sales

Nike shares plunged this week after sales in digital channels fell sharply – even though the company promised to continue optimizing “demand recognition and use of data and insights” despite pressure from emerging rivals.

Nike’s digital revenue fell 10% in the quarter – after rising 26% since fiscal 2019. Total revenue in 2024 was flat year-on-year at $51.4 billion and the company warned: “The next few quarters will be challenging.”

Nike blamed “significant shifts in customer traffic” in key markets and headwinds in foreign exchange markets. The company is focusing more on sports than leisure, it said, in light of pressure from emerging companies such as At And Hoka.

The company recently discontinued a new Chief Technology Officer, Amazon veteran Dr. Muge Erdirik Dogan, and in May 2024 also the first Chief Data and AI Officer, The stack can reveal – Oracle veteran Alan John joined as part of a recent company-wide restructuring.

The company has pulled back spending on technology as part of a $2 billion cost-cutting exercise, it acknowledged in a conference call to report quarterly earnings late Thursday. Chief Financial Officer Matthew Friend said Nike is “strictly controlling” spending.

“We have achieved savings through initiatives across all areas of our P&L and across our entire value chain, from reducing parcel delivery costs to consolidating suppliers and optimising technology spend to restructuring our organisation to streamline layers and support functions,” he added.

Nike has been working on a comprehensive ERP migration over the past few years to optimize the management of its deliveries. CFO Matt Friend described that in September 2023 as “our largest investment in transforming our supply chain and enabling us to act like a retailer”, although the project Rumor has it both late and way over budget.

However, Friend said late last year that Nike was “implementing our ERP in North America. We went online with our retail business in the first quarter and everything went well. And we’re focused on bringing the second part of our North America business, the wholesale part of our North America business, online and launching our new ERP later this year,” he added in a phone call.

The company has not mentioned any progress since then. technical websitewhich showcases some of its team’s innovative open source projects, has not updated its once regular blog since around 2019.

Nike currently has 13 open technology positions, seven in Oregon and six in India. Among them is a position for respected engineer to “lead strategy, architecture and implementation of innovative cloud, edge and network solutions that are scalable, resilient and efficient,” the company said.

Specifically, they are looking for someone who can “work closely with other departments to proactively ensure cloud engineering capabilities are able to handle emerging and future business needs.”

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