Shares of Nike Inc. (NYSE:NKE) are trading slightly higher premarket today. The sneaker giant has brought back a retired senior executive to manage its retail partnerships after experiencing strained relationships with sneaker sellers and a decline in sales.
Tom Peddie, who spent 30 years at Nike before retiring in 2020, has returned as vice president of marketplace partners, according to an internal memo obtained by Bloomberg.
Under the leadership of Chief Executive Officer John Donahoe, Nike has been working to restore its connections with retailers like Foot Locker Inc. (NYSE:FL).
This move follows Nike's strategy shift towards its own stores, e-commerce, and apps, which led to severed ties with many retail partners. Consequently, Nike's stock has plummeted by 31% this year.
"As we continue to focus and improve capabilities in our wholesale business, I am confident that Tom will bring both vision and bold leadership to accelerate the Marketplace strategy," said Craig William, Nike's president of geographies and marketplace, in the memo.
Peddie held various senior management roles during his tenure at Nike. His last position was vice president and general manager of North America. His return to Nike was set for June 24.
Recently, the company said it expects first-quarter revenue to be down approximately 10% and a high single-digit decline in sales for the first half of the year.
The decline in the guidance revenue is driven by aggressive management of classic footwear lines, ongoing challenges in digital sales, subdued wholesale orders, a softer outlook in Greater China and several timing-related factors.
Nike reported fourth-quarter revenue of $12.6 billion, down 2% year-over-year, missing the analyst consensus estimate of $12.91 billion.
Nike stock has lost more than 30% in the last 12 months. Investors can gain exposure to the stock via Vanguard Consumer Discretionary ETF (NYSE:VCR) and Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS).
Price Action: NKE shares are trading higher by 0.48% at $73.40 in premarket at last check Tuesday.
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