Analyst lowers price target after citing further Nike exits
Nine senior executives have now left Nike in the wake of a workplace behaviour controversy at the US sportswear giant, according to a Wall Street analyst.
The exodus has prompted Sam Poser, of Susquehanna International Group, to lower his price target for Nike shares from $62 to $59.
He wrote: “The executive departures could be more disruptive than most appreciate."
Poser added: “Even before the slew of departures in recent weeks, we had been hearing rumblings about dissatisfied Nike employees searching for opportunities elsewhere. Recent cultural turmoil will, in our view, catalyse additional departures.”
The analyst has identified three more exits: Cara Dailey, senior director of enterprise data management; Vijay Ilavarasan, director of global consumer knowledge; and Julien Cahn, chief marketing officer at shoe brand Converse.
These are on top of the six in the past month that followed an investigation into alleged misconduct at Nike.
Earlier this week, Nike confirmed that four executives had left the company. They include Greg Thompson, the vice-president of subsidiary Express Lane Footwear. No reason was given for his departure.
Last month, it was announced that Trevor Edwards, the president of the Nike brand, was stepping down, to be followed by Jayme Martin, a vice-president and general manager of global categories.
Others that have left include Vikrant Singh, a senior brand director for the basketball brand in North America, and Antoine Edwards, Nike’s vice-president of diversity and inclusion.
Edwards is to serve as a consultant to Mark Parker, the chairman, president and chief executive of Nike, before retiring in August.
The company said in March there had been “conduct inconsistent with Nike’s principles and we are taking the appropriate actions,” while adding there had been no specific allegations against Edwards.