00:00What is going wrong for Nike? I mean, the problem here is the pace of change and you're really seeing investors disappointed in how fast the turnaround is happening.
00:08So there are really two persistent sore points here that we saw from yesterday's results.
00:12The first being Converse, the iconic brand. Sales are down 30 percent.
00:15For a long time, the company has relied on sales of its iconic Chuck Taylor sneakers.
00:19But unfortunately, you know, consumers are just not as interested in the sneaker as they were before.
00:25The other sore point is Greater China sales. So that's down 17 percent.
00:30And that's because China, like he has really struggled to sell off a lot of its excess old inventory and really innovate fast enough to capture the attention of an increasingly picky Chinese consumer.
00:41So it's not all bad. You know, some other regions are growing.
00:44So North America is growing and it's showing some progress in its running category.
00:47But it's simply not fast enough to really buoy investor confidence.
00:51So where does the company and given the challenges, particularly when it comes to Converse and the Chinese market, where does Nike go from here?
00:57Well, really, it really needs to boost in-store traffic and sell off that excess inventory and more importantly, create products that capture the consumer zeitgeist.
01:07So on the analyst call, CEO Elliot Hill did say that the recovery won't be a straight line.
01:13We're acting decisively to accelerate the lagging areas with China at the top of that list.
01:17So they know what the problem areas are. And Nike said it will focus on tier one cities in China like Beijing and Shanghai.
01:25So it's it's moving forward with that change, but it's simply not fast enough.
01:30Products take about 18 months to two years to really feed through. So it's going to take a while.
01:35One thing that I think is important to mention is that, you know, Nike hasn't given full year guidance for a while now.
01:40It's only been given guidance for the following quarter.
01:43And one thing that will buoy investor confidence is when they start issuing longer term guidance that will give them confidence that, you know, the recovery is underway.
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