Nike Faces First Revenue Drop in 2 Years as DTC Strategy Fails to Offset Falling Demand

Nike projected to post first revenue decline in nearly 2 years on Thursday, spotlighting slower-than-expected boost from direct-to-consumer (DTC) strategy and weak North America demand
Nike has invested in selling more through own channels like stores and online instead of via wholesalers to increase margins
But DTC plan has been hindered by lack of innovation in sneakers and rising competition from newer brands grabbing market share
Nike expected to post 1% drop in Q3 revenue and at least 5 firms cut price targets ahead of Thursday earnings report
Sportswear sector outlook not good for next couple quarters amid negative reports from Adidas, Puma, Under Armour; Nike shares down 8% year-to-date