The fashion industry is replete with confounding trends and idiosyncrasies.
One of the more fascinating introductions to fashion in the 21st century has been social media, which contributes to the acceleration of new trends — and the accelerated disposal of old ones.
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What may have been deemed as cool or high fashion in the 1990s, for example, stuck around for years. From the early 1990s to the early 2000s, overalls, crop tops, chokers, dark cola lipstick and flannels were considered on-trend. That’s about a decade of Mac’s Paramount Satin Lipstick flying off the shelves around the world.
Nowadays, a trend is lucky if it sticks around for a year.
Thanks to the introduction of social-media platforms like Instagram and TikTok, users (who are increasingly younger and more numerous) engage with each other at near-instant speed.
Reality-TV-show contestants, A-list celebrities, influencers and regular Joes are all online, and they’re all judging what each other is wearing, trying to either replicate or outdo one another with edgier and newer fashion choices.
For years, Nike (NKE) reigned supreme as the top shoe brand if one wanted to look sporty and on-trend. Nike’s iconic silhouettes tended to be more streamlined and appear aerodynamic, so its wearer might feel like they’re running, walking, racing, or playing faster.
And then came the iterations. Nike Shocks, which were popular in the mid 2000s, were supposed to help absorb impact and improve performance. Air Jordans, introduced in the 1980s but still popular today, were the ultimate homage to one of the NBA’s greatest players of all time.
And countless Olympic athletes, particularly runners, don Nikes during events, with the now-infamous Vaporfly banned from some events for the alleged unfair advantage it gives its runners.
Green and blue Nike Vaporfly shoes on display.
The Washington Post/Getty Images
JD Sports CEO sees issue with Nike
But consider, for example, the recent “dad shoe” trend that has exploded on social media. Streetwear is now defined less by how fast one’s shoes look, and more by how ugly or chunky they are. Thanks to social media, brands like New Balance, Asics and Hoka have taken off as wearers opt for more casual comfort and a more substantial sneaker.
Even Crocs (CROX) are a popular option among school-age kids and adults, as a new “what was once uncool is now cool” trend overtakes the pop-culture tapestry.
But where does that leave Nike, which made its name on being the coolest shoe for years?
JD Sports (JDSPY) Chief Executive Régis Schultz, whose U.K. company sells sportswear, apparel, shoes and other athletic accessories, says Nike’s problem is that it just hasn’t gotten with the times.
“Nike has been so successful but they just stopped a little bit bringing in new stuff,” Schultz told reporters on a call in late March. “At the same time Adidas (ADDYY) is doing very well, New Balance is doing very well.”
He added that “shoppers get bored very quickly” and “if you don’t bring in new stuff, new product, new innovation, new color, I think the demand is suffering.”
Nike stock is down 25% year-to-date, and in December the sneaker maker slashed its revenue outlook for the forthcoming fiscal year, citing weaker digital demand in the U.S. and stronger headwinds in its key Europe-Mideast-Asia region.
It also announced a $2 billion cost-cutting plan. In February, Nike laid off 2% of its employees. It has also been working to streamline and simplify some of its lines.
JD Sports, for its part, reported a drop in like-for-like sales of 3.1% in Q4 2023.
