A fresh and more sports-oriented phase for Nike is on the horizon, according to the company’s new chief executive.

Nike’s CEO Elliott Hill, who stepped in last October, shared his plans for revitalizing the sneaker titan during a Thursday earnings conference. He assured shareholders that the organization will refocus its efforts on making “sport our main priority” once more.

“We’ve seen a decline in customer footfall… due to the lack of innovation in our products and the absence of compelling stories. Our promotional tactics have gone overboard,” remarked Hill.

He mentioned that recent sales discounts on Nike products “not only harm our brand but also disrupt the overall market and our partners’ profits.”

Hill, who has spent many years at Nike, returned to guide the Oregon-based sportswear firm back to stability and rejuvenate its image after experiencing “numerous quarters of challenges in sales,” particularly as new competitors emerge with more cutting-edge footwear.

As of Friday morning, Nike’s stock had decreased by 1.5%, with shares dropping more than 50% since November 2021, struggling to compete against new rivals in the footwear market, as reported by Reuters.

“We’ve lost our passion for sports,” Hill stated. “Moving ahead, our decisions will be driven by sports, placing the athlete at the core of everything we do. The specificity of each sport is what sets our brand apart and fuels our culture.”

‘We need to showcase more of what makes Nike unique,’ CEO emphasizes

“We are confident we have one of the strongest mission statements around,” Hill commented. “It is ‘to bring Inspiration and Innovation to every athlete in the world.’ Inviting 8 billion athletes to participate in sports is a compelling mission.”

According to Hill, the best path for Nike to express its identity is to adopt an athlete-centered approach, generate excitement for the brand, support local teams in major markets, and rebuild a cohesive marketplace connecting Nike Direct and Wholesale.

Key products that distinctly represent “Nike’s essence” and are setting the stage for a sport-centric relaunch include “the Pegasus 41, Nike Shox, the Kobe series, Vomero 18, and Pegasus Premium.”

Hill is feeling “optimistic” about the ongoing developments in the brand and product areas, but he cautions that sustainable and profitable growth will be a difficult journey they’re ready for, even if it affects “short-term results.”

Nike’s Q2 financial results “mostly met expectations,” but net revenues saw a 7.7% drop to $12.35 billion, undershooting the anticipated 9.41% decline predicted by analysts, according to Reuters.

“This isn’t going to be simple, but we’re prepared for the challenge,” stated Hill. “I’m confident that we are united and focused on areas that will deliver immediate effects.”

Financial experts, such as Kavar Capital Partners, suggest that it might take Nike years to recover.

“The recovery will span multiple years, but he appears to be steering back toward the basics, back to Nike being itself,” mentioned John Nagle, chief investment officer at Kavar Capital Partners, which holds Nike shares, in a conversation with Reuters.

Contributing: Reuters