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- Nike plans to cut the supply of popular sneakers like Air Force 1 and Pegasus.
- The sports apparel brand will instead focus on the Air Max Dn and a new running shoe.
- The changes come after analysts called Nike's shoe lineup "stale" last year.
It may be time to stock up on your favorite Nike sneakers before they disappear this year.
On Thursday, the company said it is cutting the supply of some sneakers, including the Air Force 1 and Pegasus, to focus on other products.
"We know Nike's not performing at our potential," chief executive officer John Donahoe said on Thursday's earnings call. "It's been clear that we need to make some important adjustments."
This year, the sports apparel brand is focusing on the Air Max Dn, a cushioned athletic shoe launching next week. The Air lineup — a "double-digit billion dollar business," per Donahue — includes shoes that will be worn by athletes competing at this summer's Paris Olympics.
Donahue was wearing the new Air Max Dns during the earnings call. "It really is a unique and great sensation," he said.
Nike is also working on a next-generation version of the running shoe Pegasus, the Pegasus 41, that is slated to be released later this spring.
The emphasis on new designs comes after analysts called Nike's once-coveted lineup "stale" last year and lowered their outlook for the company. The manufacturer and rivals including Adidas are also hurting from an overall decline in sneaker demand, especially in Europe and China.
Nike makes most of its revenue from footwear, followed by apparel and equipment. Footwear brought in $33.1 billion in its last fiscal year, which ended May 31 – more than twice the revenue of apparel, according to Nike's annual report.
On Thursday, the sporting goods manufacturer also warned investors of a low-single-digit fall in revenue in the second half of 2024 amid economic volatility and slowing demand.
Nike stock fell 5.2% in after-hours trading in New York.