Context:

Nike is returning to Amazon after more than five years and is implementing price hikes on its products as part of a strategy to counteract declining sales. The company had previously withdrawn from Amazon to focus on its own website and select third-party retailers, but recent revenue slumps have prompted a search for new growth avenues. In addition to rejoining Amazon, Nike is forming new partnerships with retailers like Printemps and introducing innovative retail experiences targeting Gen Z. Price increases will affect various products starting June 1, although certain items like children's apparel and Air Force 1 shoes will remain unchanged. Nike's global sales have been challenged by increased competition and strategic missteps, leading to a 20% drop in its shares this year, while the new CEO, Elliott Hill, aims to revitalize the brand through initiatives like a collaboration with Kim Kardashian's Skims for activewear.

Dive Deeper:

• Nike's return to Amazon marks a strategic shift after pulling its products in 2019 to concentrate on direct-to-consumer sales through its website and select retailers due to recent declines in sales figures.

• The company is forging new retail partnerships, including with Printemps, and is enhancing retail experiences, such as a new concept store with Urban Outfitters aimed at engaging younger Gen Z consumers.

• Starting June 1, Nike will increase prices on various products; shoes priced between $100 and $150 will see a $5 hike, while those above $150 could rise by up to $10, though some items, like children's products and Air Force 1 shoes, will be exempt.

• Nike's global sales fell by 9% last quarter, with a significant 17% drop in China, attributed to heightened competition from brands like On, New Balance, and Adidas, and past strategic errors.

• To boost demand and maintain full pricing, Nike is limiting the supply of classic sneakers like Air Force 1 and Pegasus, and is pushing for sales of the higher-priced Air Max line.

• Elliott Hill, the newly appointed CEO, is taking significant steps to rejuvenate Nike's market presence, including a high-profile collaboration with Kim Kardashian's Skims to launch a new activewear line.

• Nike's stock has experienced a 20% decline this year, reflecting the challenges faced by the company in navigating a competitive market landscape and recovering from previous strategic missteps.