This is an unfortunate example of how a major news network chooses an angle that runs counter to reality, in order to appear like they are breaking news. Buried in the article is this…
“Customers are switching their behavior, passing up discretionary purchases — like expensive sneakers and athletic wear — for basics and experiences like concerts and travel. Nike is also facing tough competition from upstart brands like Hoka and On Cloud.”
Nathaniel Meyersohn, ‘Nike says it will cut $2 billion in costs in a major warning for consumers’, CNN, December 22, 2023
But not before they lead with this line in the opening graph…
Nike, a bellwether for the global economy, sounded a warning sign Thursday as the sneaker giant sees consumers becoming more cautious.
Nathaniel Meyersohn, ‘Nike says it will cut $2 billion in costs in a major warning for consumers’, CNN, December 22, 2023
The reality is that the U.S. economy is performing extremely well. And Nike’s woes are a reflection of shifting consumer preferences. For the better, one might argue. They are choosing to purchase experiences and make memories over high-priced athletic shoes that are disposable fashion.
If one were cynical, one might think CNN is an extension of Nike’s marketing team providing air cover for poor sales results.