The recent decline in Nike's sales is due to several interconnected factors.

Firstly, poor digital sales have had a significant impact. Although Nike is accelerating its digital transformation, it has not achieved the expected results. The proportion of people purchasing online has decreased, and as competition on digital platforms intensifies, sales have also dropped.

Additionally, the growth of competitors is noticeable. Brands like Adidas, Asics, and New Balance are encroaching on Nike's market share. In particular, the running shoe market has seen competing products gain popularity, weakening Nike's position. Competition has intensified in Nike's traditionally strong sectors.

Moreover, changes in consumer trends cannot be overlooked. Especially among younger consumers, preferences have shifted, leading to fewer choices of Nike as before. The younger generation, which values the latest trends and unique styles, is turning to other brands.

Finally, the uncertainty in the Chinese market is also a problem. Nike once achieved significant growth in China, but recently, sustaining that growth has become difficult. Economic uncertainties in China and the rising popularity of local brands are impacting Nike's sales.

Elliott Hill mentioned that Nike has recently strayed from its core principles, explaining the background of the sales decline. Elliott Hill stated, "We have lost our obsession with sports," emphasizing that in the future, sports will lead and athletes will be at the center of all decisions. He clarified that relying on sportswear silhouettes is not Nike's original identity.

In fact, Nike's total revenue has decreased by 8% compared to the previous year, with regional sales also declining. Sales in North America and Greater China fell by about 8%, while Europe saw a 7% drop, and Asia Pacific and Latin America each decreased by 3%. This sales decline may be due to Nike losing its original sports-centric image and focusing too much on fashion elements.

Additionally, wholesale revenue also decreased by 3% to $6.9 billion, and Elliott Hill emphasized the importance of regaining trust with partners. He stated, "Some partners and channels think we have turned our backs on them," reflecting on Nike's lack of ongoing communication, and expressed that in the future, Nike will actively support a sales approach that seeks mutual benefits with partners. In short, he emphasized the strategy that if partners succeed, Nike will succeed.

These changes reflect Nike's commitment to reclaiming its original brand philosophy and strengthening its focus on sports.