Nike Faces Lawsuit Over Misleading DTC Strategy Performance
A new class action lawsuit has recently been filed on June 20th against Nike's CEO John Donahoe and CFO Matthew Friend over misleading investors during the brand's DTC strategy.
Filed by Kessler Topaz Meltzer & Check, LLP, this lawsuit claims that Nike had failed to disclose that the Swoosh’s “direct-to-consumer strategy was unable to generate sustainable revenue growth.” Over the pandemic, Nike announced a new strategy focusing on digital channels and removing themselves from various wholesale partnerships with businesses like DSW, Foot Locker, etc. It looks like Donahoe has now gone back from this strategy and will be returning to the old retail DTC strategy. Nike's 2024 Q4 earnings call will happen on June 27th, 2024, stay tuned for more updates regarding this lawsuit.
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Cover image via CNBC
A new class action lawsuit has recently been filed on June 20th against Nike's CEO John Donahoe and CFO Matthew Friend over misleading investors during the brand's DTC strategy.
Filed by Kessler Topaz Meltzer & Check, LLP, this lawsuit claims that Nike had failed to disclose that the Swoosh’s “direct-to-consumer strategy was unable to generate sustainable revenue growth.” Over the pandemic, Nike announced a new strategy focusing on digital channels and removing themselves from various wholesale partnerships with businesses like DSW, Foot Locker, etc. It looks like Donahoe has now gone back from this strategy and will be returning to the old retail DTC strategy. Nike's 2024 Q4 earnings call will happen on June 27th, 2024, stay tuned for more updates regarding this lawsuit.
To stay informed on all things Nike Brand and to stay up to date with the latest releases, connect with us on Instagram and Twitter.
Cover image via CNBC