Nike is experiencing significant challenges, announcing its third round of layoffs this year due to disappointing sales figures and a pessimistic forecast predicting a 7-9% revenue decline next year. The company brought in veteran Elliot Hill in 2024 to revitalize the brand, but faced setbacks including Kylian Mbappé’s move to the Swiss brand On and weak performance in the Asian market, particularly in China where revenue dropped 22% in the last quarter. Industry expert Dave Quadvlieg attributes the struggles to past strategic decisions, specifically a shift towards direct-to-consumer sales through Nike’s own stores and online platforms, alongside increased demands on retailers. This approach alienated some retailers who reduced their Nike stock. Sneaker expert Thomas van Vliet notes a decline in brand hype, linked to reduced visibility in smaller retail locations, impacting the overall appeal of Nike products.