Tuesday, September 23, 2008
PORTLAND, Ore. (AP) — Nike said Monday that it is leaving the elite swimwear market.
The company will continue to provide swimwear for colleges and sell to traditional retail customers. But it will not compete against the likes of Speedo to get the swoosh on the world’s top swimmers.
“We will not invest in next-generation swim innovation, which is not in line with our stated category growth strategy,” the company said in a statement.
Nike said it made a “strategic decision as part of the company’s long-term growth plan.”
The Beaverton, Ore.-based company had announced several years ago that it would focus on six key categories to reach a $23 billion revenue goal by 2011. Those categories are running, soccer, basketball, men’s training and women’s training and sportswear.
CNBC reported this weekend that Nike may be halting its swimsuit development after a showdown at the Beijing summer Olympics. Nike lost some of its edge at the games when Speedo stole the spotlight with its LZR Racer suit.
According to Speedo, of the 77 world records set since the release of the suit in February, 72 have been in the LZR Racer. And it was worn by Olympics darling Michael Phelps.
Other swimmers clamored to get the suit at the games. Nike even allowed some of its athletes to wear the LZR Racer, an unprecedented move by the world’s largest athletic shoe and apparel company.
But Nike denied that Monday’s decision was a direct result of Speedo’s success, saying it was a “direct result of our long-term growth strategy focusing on the areas where we can have the largest growth.”
Research organization The SportsOneSource Group said Nike is a distant third in the $200 million performance swimwear marketplace.