Can Nike make a comeback? Caitlin Clark could be the key.

Even if you’re just a casual sports fan, you’ve probably heard of Caitlin Clark. The basketball star broke college records in scoring, three-pointers and assists, among other categories, and wowed fans in her debut year in the WNBA, bringing a wave of attention and record audiences to women’s basketball, just like Tiger Woods. in golf a generation ago.

Clark is arguably the greatest female athlete since Serena Williams and she has attracted more interest than AlphabetGoogle in the last year than Lebron James or Steph Curry. Her brand extended beyond basketball and into pop culture as she emerged Saturday Night Live in a Weekend Update segment and was dressed by Prada for the WNBA draft, the first time the luxury brand has taken such a step for the NBA or WNBA draft. Meanwhile, she set records for attendance and merchandise sales in what became known as the Caitlin Clark effect.

In other words, her trade is self-evident.

NIKE (NKE 0.18%)the world’s largest sportswear company, was smart enough to sign an endorsement deal with Clark. First, he made a name, image and likeness (NIL) of her in 2022 when she was in college. Then, in April, he signed her to an eight-year, $28 million contract ahead of her WNBA debut. But what the company has done with it since is a head-scratcher.

Image source: Getty Images.

Nike air ball

Nike won a bidding war against rivals such as Under Armour, sneakersand Cougar to team up with Clark. But since then, the Swoosh has done next to nothing with Clark, despite the superstardom and attention surrounding her rookie season.

Nike did not produce an ad featuring Clark or include her in a marketing campaign. Clark’s signature shoe, which was part of the deal, will reportedly not be released until 2026 as Nike wants to prioritize reigning MVP A’ja Wilson’s shoe. On social media, some fans noted that Nike didn’t even bother to post to congratulate Clark for winning Rookie of the Year.

It’s unclear why Nike chose to ignore what is arguably the sports story of the year, but politics appears to play a role. Other WNBA stars resented the attention Clark received before even playing in a single WNBA game.

Unlike Clark’s shoe delay, Lebron James wore his signature Nike shoes in his first NBA game in 2003 and had a TV commercial to go with it. Meanwhile, Michael Jordan laced up his debut shoe just weeks into his rookie season in 1984.

A familiar problem

Nike shares have fallen from their 2021 highs as a strategic shift under outgoing CEO John Donahoe reversed. Many of Nike’s challenges seem to stem from the same problem Caitlin Clark faces: ignoring customers.

Much of the transformation under Donahoe was built around Nike’s transition from primarily a wholesaler to primarily a direct-to-consumer brand. This change made sense in some ways because it gave Nike more control over its brand and image and allowed it to earn higher gross margins. But more importantly, it was not in the best interest of the customers.

It seems that withdrawal from retail partners such as Foot Locker alienated Nike customers who shop there and at the same time gave them the opportunity to become upstart rivals such as On Holding and DeckersHoka brand to gain valuable shelf space. This is part of the reason why they are growing much faster than Nike and quickly taking market share from running.

Similarly, ignoring Caitlin Clark’s craze is clearly not giving customers what they want, as many would line up for Clark’s first shoe if it were available. Delaying it is clearly detrimental to the business, especially when Nike is in desperate need of a catalyst to turn the business around as it forecasts a drop in sales for the current fiscal year. A high-profile ad campaign around Clark could be just what Nike needs to create a halo effect for the larger brand and help it return to growth.

Hill’s priority?

Elliott Hill will take over as CEO of Nike on October 14. The longtime company veteran, who is coming out of retirement for the role, will have his work cut out for him as Nike struggles on multiple fronts.

But an easy way for Hill to generate goodwill among Nike’s customer base, tap into a massive market of athletes and fans, and usher in a new era for the brand is to put Clark center stage where he belong.

The next WNBA season doesn’t start until May, but that should give Nike’s new management team time to formulate a compelling strategy around Clark and get her signature shoe out by next season.

Doing so would be a slam dunk for the brand, Nike stock, and Clark.