Nike: An epic saga of value destruction

Nike's 2020 shift toward direct-to-consumer sales under CEO John Donahue and President Heidi O'Neill destroyed significant value, a critique argues. After Nike's Q2 FY24 results on June 28, 2024, the company lost $25bn in market value in one day, and its shares were down 32% since the start of 2024. The argument points to the elimination of product categories, the end of wholesale leadership, and heavy performance marketing spending. It states that inventory rose from $6.5bn on May 31, 2021, to $10bn on November 30, 2022, and that gross margin fell from 46% in FY22 to 43.5% in FY23.