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Nike troubles complicate Foot Locker鈥檚 turnaround plan: The retailer lowered its full-year guidance as it struggles to win over cautious shoppers outside of peak shopping periods.

On today's podcast episode, we discuss why Nike isn鈥檛 doing all that well, how it can stay relevant with the competition, and which brands it could possibly learn from. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Senior Analyst Zak Stambor and Analyst Rachel Wolff.

Alibaba touts early Singles Day successes: Apple, lululemon, and Nike were among the biggest beneficiaries as price-conscious shoppers took advantage of steep discounts and other promotions.

Nike pulls FY guidance amid sales slump: Incoming CEO Elliott Hill has the difficult task of reinvigorating the brand and ramping up innovation to win back market share.

It won鈥檛 be easy to get Nike back on track: The brand鈥檚 missteps enabled competitors adidas, On Running, and Hoka to build connections with consumers that may be hard to dislodge.

Retail marketers should focus on brand marketing to combat consumers鈥� desire for value. That was the main theme from General Mills, Nike, Levi鈥檚, and more brands鈥� recent earning calls. Oh, and if you can get Beyonce to name a song after your brand, even better.

68% of shoppers were deceived into buying counterfeits last year: Copycats鈥� rapid growth is a mounting problem for global players like Nike and Amazon as well as small merchants.

Meanwhile, cutting ties with Irving cost Nike one of its most promising franchises鈥攚hich Anta was quick to capitalize on. The Chinese company was the fastest-growing sneaker brand on Stock X in 2024. Its sales catapulted more than 1,900% YoY, in large part due to Irving鈥檚 Kai 1 basketball sneaker launching early in the year. Our take: In many ways, Nike is still on top.

Western companies鈥� desire to downplay ties to Xinjiang also risks raising the ire of both the government and consumers鈥攁s PVH, like Nike and H&M before it, discovered. Our take: Retailers like PVH are easy targets for Beijing.

Unlike rival Nike, which has leaned heavily on discounts to clear inventory, adidas鈥� popularity among the fashion crowd has enabled it to maximize full-price sales. The brand鈥檚 Q4 gross margins increased by 5.2 percentage points to 49.8%. Gross margins for the full fiscal year crept up to 50.8%.

Gross margins in Q3 rose 160 basis points to 60.3%, far exceeding the 49.8% and 43.6% that adidas and Nike, respectively, achieved in their most recent reported quarters. But that strategy is not without risks: Ugg鈥檚 strong performance during the first three fiscal quarters has left Deckers with limited inventory, which will weigh on its Q4 performance.

Go further: Listen to our full episode of 鈥淩eimagining Retail鈥�: 鈥淗ow Nike is trying to turn things around to stay relevant with rivals and new entrants.鈥�.

Lululemon is now the third-largest foreign sports apparel player in the region, behind Nike and adidas, per Morgan Stanley.

Nike also failed to capitalize on the Paris Olympics: Many of the styles it featured won鈥檛 hit store shelves until next year. Starbucks reported its steepest quarterly sales decline in four years in fiscal Q4 ended September 29, underscoring the scale of the challenges new CEO Brian Niccol faces as he tries to revitalize the struggling company.

Nike, once by far the dominant sportswear brand in China, has watched its advantage slip as companies like Li Ning and Anta narrow the quality gap and introduce more products. And local beauty brands are growing at the expense of global players like Est茅e Lauder and Shiseido thanks to a better understanding of local consumers鈥� shopping behaviors, preferences, and product needs.

Puma鈥檚 strategy: Puma is focused on taking on bigger rivals such as Nike and adidas by looking for opportunities to make inroads in both the performance and fashion spaces. It signed NBA star Tyrese Haliburton and US sprinter Christian Miller.

Meta hasn鈥檛 disclosed which advertisers are involved, but Skittles, Marvel, Nike, and Louis Vuitton were among the brands that had active ads on Threads as of January 27. Why it matters: The volatility at TikTok is spurring advertisers to seek alternatives, and Meta isn鈥檛 going to pass up an opportunity to throw Threads into the mix.

Rather than competing through mass advertising against giants like Nike and Adidas, Hoka built measurable growth through targeted communities of ultra-runners and fashion enthusiasts. Its distinctive designs became revenue drivers by fostering genuine belonging. This community-first approach creates what impact.com calls the 鈥渁uthenticity flywheel鈥濃�攁 measurable cycle of advocacy and growth.

Role reversal: Adidas鈥� momentum is in stark contrast with rival Nike, which reported a 10% drop in sales for its last fiscal quarter and withdrew its guidance in an attempt to reset expectations ahead of new CEO Elliott Hill鈥檚 tenure. As Hill noted to employees at his first all-hands meeting as leader, 鈥淭here鈥檚 no hiding the fact that [Nike is] in a tough spot right now.鈥�.

Products meant to last, like coats and jewelry, or with high name brand recognition, like Nike, are less popular as dupes. What it means for 2025: Gen Z鈥檚 embrace of dupes reflects their desire for affordable alternatives in beauty and fashion. In 2025, brands may face increased pressure to balance affordability with quality to compete with dupe culture.

But while all three of the above are growing much faster than heavyweights like Nike鈥攚hich reported a 4% YoY sales decline in the Greater China region in its most recent quarter鈥攖hey鈥檙e relatively small potatoes compared with local brands like Anta and Li Ning: Both homegrown companies are relying on the current guochao (national pride movement), as well as rising demand for cheaper alternatives to pricey