Nike Is Down 47% But AI Agents Could Make Its Next Problem Worse
Nike shares have fallen 47% this 12 months. Retail CEO Jan Kniffen says AI brokers may steer consumers away from legacy manufacturers.
Nike already faces shrinking gross sales. Revenue fell 4% within the newest quarter, and the corporate guided to a high-single-digit drop this fiscal 12 months. Now, AI’s disruption continues to stretch into completely different space’s embrace a Wall Street powerhouse.
Who Controls the Shelf When AI Agents Do the Shopping?
Kniffen, CEO of J. Rogers Kniffen Worldwide Enterprises, appeared on CNBC‘s Power Lunch. He mentioned AI brokers will quickly choose and purchase merchandise for consumers.
A client who asks for trainers, not Nike, could by no means see the model first. Rivals akin to Hoka or On may win on match and value.
Meanwhile, the hosts questioned the thought, noting a mistaken choose means a return and further problem.
However, Kniffen mentioned inertia may defend manufacturers, as a result of many patrons nonetheless ask for Nike by title.
Nike has not sat out the shift. ConsumerGoods reported in May that Nike deliberate to promote inside Google’s Gemini chatbot and AI Mode search from June. Still, the agent may choose a rival.
Does Scale Win the Agent Era?
Kniffen argued that huge gamers finally win, as Amazon and Walmart did after the web increase. He known as Walmart the most effective AI operator in America, citing its AI use throughout provide chain, shops, and warehouses.
Nike has scale, with $11.2 billion in quarterly income, however gross sales fell 4% in accordance with its results. CNBC reported that CEO Elliott Hill mentioned efficiency merchandise stay too small to offset losses elsewhere.
Sportswear fell by a low-double-digit share, and Greater China gross sales dropped 26% excluding forex swings. Nike additionally introduced layoffs starting in 2027.
Citi analysts summed up the shift in a Friday observe.
“Nike is popping right into a cost-cutting story.”
Citi analysts, CNBC
Nike closed at $33.96 on October 5, about 47% beneath its 2025 year-end shut. It had already turn out to be the Dow’s worst performer by mid-September. Best Buy, Target, and Victoria’s Secret have carried out nicely this 12 months. Agents may widen the cut up between winners and losers.
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