Nike's new CEO Elliott Hill has promised to get the beleaguered sports giant back on track.
The sporting goods company has had weak sales in China and has been hampered by an oversupply of products that has driven down prices. It reported a quarterly profit of $1.2 billion, down 26% from a year earlier.
Revenue fell 8 percent to $12.4 billion. Sales were down in all four geographic divisions.
In addition to product oversupply and criticism about an insufficient product mix, Nike's results suffered from the negative effects of its efforts to increase direct-to-consumer sales.
These steps created opportunities for smaller companies to take market share.
After joining Nike in October, Hill described his first two months as CEO as "energizing." He sought to clear excess inventory, renew innovation and pursue "bold marketing" in keeping with the company's tradition.
"We're refocusing the business to get back to driving the Nike market," Hill said. | BGNES
