The latest updates highlight strategic moves by major brands like Nike and controversies surrounding Shein.
- Nike plans to introduce a new range of trainers globally, priced at $100 or less, to combat declining sales.
- The human rights charity Stop Uyghur Genocide has urged the FCA to prevent Shein from listing on the London Stock Exchange due to alleged human rights abuses.
- Under Armour’s founder, Kevin Plank, has received an increased compensation package as he resumes the role of CEO.
- These developments indicate significant shifts and challenges within the fashion industry.
Nike is set to release a new range of trainers, priced at $100 (£79) or below, as a strategic response to counter its declining sales figures. This decision follows a reported 2% decrease in revenue over the 12-month period ending on May 31, 2024. Competition from emerging rivals such as On and Hoka contributes to this decline. The new affordable range aligns with Adidas’s popular models, Samba, Gazelle, and Campus, which retail between £85 and £95. The move is aimed at reinforcing Nike’s market position in the face of increasing competition.
The UK-based human rights charity, Stop Uyghur Genocide, has appealed to the Financial Conduct Authority (FCA) to block Shein from listing on the London Stock Exchange. The organization’s appeal is grounded in allegations against Shein’s suppliers for exploiting individuals from the Uyghur ethnic group in China’s Xinjiang region. This contentious issue has also drawn criticism from Amnesty International and the British Fashion Council, as it involves significant human rights concerns. The proposed Initial Public Offering (IPO) by Shein was reportedly filed at the start of June, further intensifying the scrutiny surrounding the fashion retailer’s practices.
Under Armour’s founder, Kevin Plank, who reassumed the position of chief executive officer in March, has experienced a notable increase in his total compensation for fiscal 2024, amounting to $4.6 million (£3.6 million). This marks a 55% rise from the $3 million (£2.4 million) he received in fiscal 2023. Plank’s compensation package encompasses a salary of $500,000 (£394,000), stock awards valued at $4 million (£3.1 million), and $127,220 (£100,274) in non-equity incentive plan compensation. This adjustment reflects Under Armour’s recognition of Plank’s leadership during a crucial period for the company.
These developments demonstrate strategic realignments and potential challenges faced by major players in the fashion industry.
