Glasses on the run Newsletter #27

Hi,

I hope you are all doing well. Here is the most interesting from the business of running for the last couple of weeks. Enjoy!

What was interesting in the business of running

Nike announced its quarterly results for the fourth quarter of its 2023 fiscal year. Its revenues increased 5% for the quarter as compared with the same period last year, while its annual revenues for the Nike brand increased 9.7% as compared to the revenues for the 2022 fiscal year. It did however miss its earnings due to lower margins, driven by increased costs and bloated inventory levels. One thing that was interesting to see was Nike's direct business growing 13.8% year on year (in the chart below), driving the overall growth for the company.

Continuing with Nike - it topped Kantar's Top 10 Apparel Brands annual ranking although its brand value actually declined 31.7% as compared to last year.

Similar to Nike, Asics's distribution strategy is evolving. It's shifting towards direct sales and large chains. That, as a result, has impacted very negatively small retailers, like the ones in the UK, which Asics has announced it will no longer work with.

As mentioned in previous newsletters, Saucony is shifting its marketing strategy to more collaborations and more active marketing to audiences it may not have been reaching to before.

Other interesting stuff

A typically fun and enjoyable Salomon TV video with ultra runner Mathieu Blanchard.

In the eve of Tour de France, which did already start, Strava released a data set from 37 pro cyclists who used the app while training for the Tour de France from January to June.

And finally, a story about one of the largest sneaker resellers in the US, who has allegedly been run as a Ponzi scheme.

As always, thank you for reading,

Momchil