Nike (NKE) stock is in focus after the athletic company announced quarterly results and offered insights into new CEO Elliott Hill’s turnaround plan.
Resale marketplace, StockX, chief operating officer and incoming CEO Greg Schwartz joins Wealth with Alexandra Canal to discuss how Nike is selling in the secondary marketplace and what the leadership change means for resellers.
We think a turnaround is needed, and I think Elliott’s saying the right things,” Schwartz says, adding, “It’s time that they turn a corner. What we’ve seen is really a multiyear cycle of oversupplying product, specifically silhouettes like Dunks, Air Force Ones, [and] Jordan Ones.”
The StockX executive explains, “Oversupplying leads to heavy discounting and, frankly, just a lack of brand cachet, and so when you see that, when you see really a lack of innovation, it’s time for a change.”
“We’ve seen Nike’s market share drop double digits on StockX, and [it’s] still a very large, still a strong brand on our platform, but really that’s opened up the doors for incumbent brands. Puma, Asics, New Balance, [and] Adidas have been taking more and more share and becoming more and more prevalent on the platform.” He adds that Hoka and ON have benefited from Nike’s challenges on the resale platform.
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This post was written by Naomi Buchanan.
