Nike Leadership in ‘the Hot Seat’

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Nike reports earnings this week and we take a look at what to expect. Plus, Timberland Pro is now making shoes for the hospitality industry and Puma and Formula 1 have launched their first full collaborative capsule.

Here's what you need to know.

After a Week of CEO Shifts, Nike Leadership Is in ‘the Hot Seat’ Ahead of Q3 Earnings

Analysts are taking a critical view of Nike Inc.’s management team ahead of the company’s third quarter earnings report on Thursday.

Following a week of high profile chief executive departures at Under Armour, Brooks and Allbirds — all for different reasons — some analysts are speculating whether Nike could be slated for a change at the top, given the company’s recent product and marketplace headwinds.

The issues: Nike last quarter announced?new measures?to “streamline” its organization to save up to $2 billion via layoffs, simplified product and automation. Also, some analysts have been skeptical?about Nike’s progress in its DTC-focused plan it rolled out in 2020 — the Swoosh has re-entered or reinvigorated wholesale partnerships with DSW,?Macy's?and?Foot Locker in recent months, which has caused it to sacrifice brand equity, in some cases.

“Nike leadership is in the hot seat,” wrote Stifel analyst Jim Duffy in a Sunday note, explaining how investors will want to see proof of Nike’s improvement in North America. He added that a CEO change at the company along with a guidance shift could be a potential factor for future stock movement. Since December’s cost-cutting announcement, Nike’s stock took a dive and hasn’t fully gained momentum since. Shares are currently down about 7 percent, year-to-date.

Read more about what analysts had to say about a potential Nike leadership shakeup, here.

Puma and Formula 1 Launch Their First Collaborative Sneakers

Puma and Formula 1 have launched their first full collaborative capsule since inking a new deal last year to make the sportswear brand the official supplier for the highest class of international racing.

Three footwear models are included in the drop, each of which have been rendered in at least two colorways.

Leading the footwear option is the Future Cat Motorsport, a driving shoe featuring a partial leather upper with ProFoam technology in the midsole. The shoe is available in black- or white-dominant color schemes, both of which feature red trim, branding, and laces.

Zoom out: Puma has had a presence in the sport since 2001 through its deals with individual teams, but it’s relationship with Formula 1 has been made deeper since becoming its official supplier last year. The new deal comes amid a boom in popularity for Formula 1, and A$AP Rocky was brought into the fold as creative director, adding his own fashion and streetwear clout.

Timberland Pro Is Now Making Shoes for the Hospitality Industry

Timberland Pro has expanded its offering and is now making footwear for the hospitality industry.

Timberland, via its arm dedicated to skilled trade professionals, released the Burbank Collection on Monday, the brand’s first range of footwear made for workers in the restaurant and hotel industries. The collection, Timberland Pro explained via statement, includes industry-standard all-black silhouettes that were created with comfort, durability protection and slip resistance in mind.

“After in-depth research, we found that by 2031, there will be over 15 million people working in the leisure and hospitality industry. Timberland Pro saw an opportunity to relaunch our line of slip-resistant footwear,” Timberland brand marketing director Ryan Murphy told FN.

Timberland Pro launched the Burbank Collection with two unisex styles: the Burbank Soft Toe Work Shoe and the Burbank Slip On.

Looking ahead: Although sparse on details, Murphy said Timberland Pro plans to expand the hospitality category with more footwear “in the near future.”

Need more shoe news?

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• Emerging Basketball Shoe Brand Crossover Culture Signs Five Athletes to NIL Deals
• The Nike Kobe 4 ‘Philly’ Sneaker Is Coming Back for the First Time Since 2009

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