Nike’s Restructuring Plan Enters Implementation Phase

A pivotal operational shift commences today at sportswear titan Nike. The company's "Win Now" strategic overhaul reaches a milestone with Venkatesh "Venky" Alagirisamy formally assuming the role of Chief Operating Officer. This move is central to addressing persistent supply chain complexities that have recently exerted significant pressure on profitability margins.

The consolidation of oversight responsibilities marks a critical development for shareholders. Alagirisamy, previously in charge of the global supply chain, now assumes direct control over logistics, planning, manufacturing, and technology functions. This restructuring coincides with the elimination of the standalone Chief Technology Officer position and the departure of the former technology lead, Muge Dogan.

According to CEO Elliott Hill, the objective is to dismantle bureaucratic obstacles. Embedding technology directly into core operational workflows is intended to enhance production agility, allowing it to respond more swiftly to actual consumer demand. This approach tackles a fundamental issue from recent financial quarters: elevated inventory levels that necessitated deep discounting to clear stock.

Market Observers Anticipate a Turnaround

This internal reorganization is being supported by a renewed product focus. The launch of the new "Tiempo Maestro" football boot last Friday represents a direct response to critics who have pointed to a perceived innovation lag compared to emerging rivals like On or Hoka.

Should investors sell immediately? Or is it worth buying Nike?

Financial analysts are generally viewing the dual approach of leadership changes and product initiatives favorably. RBC Capital recently reaffirmed its "Outperform" rating on Nike shares, accompanied by a price target of $85. Market experts suggest the challenging inventory correction cycle is nearing its conclusion. A successful clearance would position the company to return to selling a greater proportion of its products at full price by the 2026 calendar year.

Signs of budding optimism are visible in the stock's performance. Although the share price remains down approximately 21% year-to-date, closing at €56.60, it has managed to advance over 7% in the past 30-day period.

Preparing for the December Earnings Report

The operational changes enacted today set the stage for Nike's next significant financial event. On Thursday, December 18, 2025, the company is scheduled to release its results for the second fiscal quarter. Investors will scrutinize the report for early indications that the new structure is reducing selling, general, and administrative (SG&A) expenses and whether gross margins have stabilized at anticipated levels.