For the last few years, Nike Inc. prioritized a multi-billion-dollar sneaker franchise that helped the world’s largest sportswear company reach its lofty revenue goals. Now that franchise is sputtering.
Nike
Sales of Nike Dunk, a 1980s basketball shoe worn more on the streets these days than on the court, are expected to plummet 70% over two years as new leadership dials back the company’s dependence on its classic sneakers and makes way for other fresh sneaker designs, according to new estimates from analysts at Piper Sandler.
That drastic drop signals a fundamental realignment in how Nike does business as new Chief Executive Officer Elliott Hill, a company veteran who came out of retirement to take the top job in October, tries to stage a comeback after a grim year of falling sales and corporate layoffs. One of Nike’s biggest problems: too many Dunks.
“We will return to the discipline of franchise management that I was a part of for so many years,” Hill told investors in December shortly after becoming CEO. He wants to renew the longtime Nike tactic of keeping goods just scarce enough that shoppers still clamor for more. “We’ve already started managing the inventory in our marketplaces.”
Prior to its Dunk problem, Nike had shown remarkable prowess managing its product lines, cycling in and out of fashion trends by retiring or reducing some styles in favor of others — only to bring them back when the time was right. In 2020, for example, Nike capitalized on docu-series The Last Dance, which featured Michael Jordan, with a line of retro Jordan releases that renewed the franchise.
Hill is steering Nike back toward performance shoes used in sports and training, and has vowed to reduce the size of three lifestyle sneaker lines — Air Force 1s, Air Jordan 1s and Dunks — to balance the retailer’s product offerings. Demand for these classics has waned over the past year.
Of these franchises, Dunk is set to face the “most aggressive actions,” Chief Financial Officer Matt Friend said earlier this month. A representative for Nike declined to provide additional comment on the matter.
In fiscal 2024, Dunks accounted for about 18% of Nike’s total footwear sales, or about $5.85 billion, according to the Piper Sandler estimates. Analysts predict that the business will shrink to just $1.75 billion in Nike’s next fiscal year, which begins in June.
“If you don’t innovate and become overly reliant on what’s worked, you lose share,” said Anna Andreeva, a Piper Sandler analyst who co-authored the report. Analysts examined projected sales for the fiscal year ending in May 2026 compared with estimated sales two years earlier. “That’s essentially what’s happened in the last few years. The current leadership is trying to correct it, which we think is the right thing.”
Nike Dunk had been the world’s hottest sneaker franchise under previous CEO John Donahoe. Last year, Friend told investors that Dunk represented virtually zero sales prior to 2020. A series of hit collaborations with the likes of Travis Scott and the Grateful Dead, then the rise of the black-and-white Panda Dunk, sparked a renaissance for the decades-old line.
As demand rose, Nike looked to sate consumers by releasing new Dunks constantly in every possible color combination and lined up collaborations with everyone from the Wu-Tang Clan to the Powerpuff Girls. Sneaker reseller Goat Group Inc. now has nearly 4,700 different Nike Dunks listed on its marketplace.
“Nike was putting up numbers with the Dunks,” culture magazine Complex wrote. “Nike was making these paint-by-number, every-shade-of-Pantone Dunks by the boatload, with nearly a new one coming out every week.”
By September 2023, it was among the largest sneaker lines in history and had spearheaded Nike’s growth to $50 billion in annual revenue. In the 2024 fiscal year, the Dunk business was as large as Air Force 1 and Jordan 1 combined, according to Piper Sandler data.
The strategy worked until shoppers got sick of the shoes. Last March, Regis Schultz, the CEO of Nike’s key European retail partner JD Sports, warned his investors that demand for Nike Dunk was dwindling. By June, sales were sinking.
This month, Hill said that Dunk and the other classic shoes will retain an important place in Nike’s lineup, but they’ll be a smaller part of the streetwear portfolio. He pointed at shoes like the Air Superfly and LD-1000 as prospective hot sellers. Friend added that in most regions, growth in areas such as running, training and basketball shoes nearly offset those declines in lifestyle footwear.
“The teams are taking all the right actions against those key footwear franchises,” said Hill.
The Marseille commercial court ordered the judicial liquidation of French denim brand Kaporal on March 27, marking the end of the company’s operations. The ruling follows an 18-month management-led takeover and affects 280 employees.
Kaporal shuts down – Kaporal
As of March 28, Kaporal’s e-commerce site displays a closure message: “Permanently closed. This site is no longer active. Thank you for your trust and support. See you soon, here or somewhere else!”
The liquidation ruling definitively halts the company’s activity. At its peak, Kaporal operated over 60 stores in France. According to the local newspaper, La Provence, the court did not permit business continuation under new terms.
The ruling brings an end to the company’s short-lived recovery effort. In July 2023, three senior managers took over the brand through a court-approved restructuring plan, aiming to save 78 out of 85 stores and retain 395 of the 434 employees. Since then, the company has further scaled back, focusing on restoring its denim heritage and reconnecting with its Southern French roots.
“Since the takeover, the team worked relentlessly to revive the brand, with a renewed focus on style and the popular, warm values that define Kaporal,” the company stated in a letter shared with FashionNetwork.com.
“By returning to our denim roots and embracing bold collaborations, we reignited creative energy, clarified our brand identity, and reinforced our position in the market. We managed to modernize the offer without losing Kaporal’s authenticity—rooted in Mediterranean culture and, especially, its love for Marseille. Unfortunately, today’s economic conditions make it impossible to continue this work within the current framework.”
Kaporal had set an ambitious revenue target of €60 million, requiring sustained double-digit growth, which it ultimately failed to achieve. Although broader conditions in the French fashion retail sector have been challenging, the company has not disclosed specific reasons behind the decision to cease operations.
In the same letter, the leadership expressed gratitude to teams in France and abroad, acknowledging their commitment and resilience: “Their dedication kept the business going and drove the necessary transformation. We also want to thank our partners, suppliers, and customers for their unwavering support and trust.”
It remains unclear whether a buyer will step in to acquire Kaporal’s assets, including the brand name.
Founded in 2004 by a Marseille-based family with roots in denim manufacturing, Kaporal posted €99 million in revenue in 2022 but struggled with persistent losses, which led to its restructuring. In 2023, founder Laurent Emsellem—who led the company until 2013, following its acquisition by TowerBrook Capital Partners—made an unsuccessful attempt to repurchase the brand, proposing to retain 281 employees and 70% of the store network.
Other Marseille-based denim players, including Golden Blue, owner of Le Temps des Cerises, expressed interest in the brand. The case also drew attention from Guerrida—operator of Frishop and Tritex—and off-price chain Noz, which explored acquiring Kaporal’s stock.
In a major strategic change Dsquared2 has ended its long-time licensing agreement with Staff International, the key operating company of Italian fashion billionaire Renzo Rosso. Who, in turn, has already sued the designers in response.
Dean & Dan Caten, by Giampaolo Sgura
However, six hours after DSquared2 announced the termination of its long-time licensing agreement with Staff International, the licensor sued the fashion house for breach of contract. The conflicting statements suggest that this issue looks like becoming a major court battle pitting one of Italy’s largest fashion empires and one of Milan’s hottest runway brands.
“Dsquared2 Group announces the immediate termination of its licensing agreement with Staff International S.p.A. Consequently, the Group will assume direct control over the production and distribution of its Ready-to-Wear collections,” the Milan-based house said in a terse release Saturday.
“This transition takes effect immediately and will commence with the upcoming Pre-Collection Spring/Summer 2026 sales campaign,” added Dsquared2, which was founded by twin brothers Dean and Dan Caten over three decades ago.
Staff International is the key production wing of Only The Brave, the holding company of Rosso, which also owns Diesel, Marni, Maison Margiela and Jil Sander, as well as the manufauring license of Viktor&Rolf.
“Dsquared2 Group expresses its sincere gratitude to all those who have contributed to this collaboration and looks forward to fostering continued partnerships in the future,” the release added.
However, later Saturday, Rosso’s group responded forcefully: “Staff International reiterates its conviction that the license agreement is fully effective and confirms its intention to fully execute it until its natural expiry. Therefore, the company firmly rejects any possibility of early termination of the contractual relationship, and believes that legal conditions for early termination do not exist.”
“Staff International will continue to act with the utmost transparency and determination to protect its rights, honour its contractual commitments and safeguard its reputation, and reserves the right to take any further action,” it added.
The agreement – which is said to last 25 years, with Staff International dates back to 2002, and helped fuel the spectacular development of Dsquared2, the last runway brand in Milan to have grown into a major global fashion brand.
Born in Willowdale, Ontario, Dean and Dan Caten (Catenacci, originally) began their career path in fashion by moving to New York in 1983 to attend Parson’s School of Design. In 1991 they arrived in Italy where in 1994, after numerous collaborations with major fashion houses, they first staged their debut runway collection. It marked the first in a long line of runway extravaganzas that would capture the attention of journalists and buyers for their unique brand of fashion, music and theatre.
The Catens went on to build a multi-million dollar business. And to dress everyone from Madonna in her iconic western video clip, “Don’t Tell Me”, to Beyoncé for her Super Bowl performance. The duo also has an impressive range, all the way to dressing the four-time English Premiership Champions, Manchester City. And a great HQ, a former electric energy headquarters converted into office, show-space, inn, gym and rooftop restaurant with swimming pool. They have become one of the city’s great fashion institutions without ever losing the DNA of the Wild North. And famed for their ovations, where they take their bow in matching outfits – whether disco dragoons, Klondike trappers or matinee idols.
Leave it to the Canadian duo to stage an epic 30th anniversary show in Milan this past season, the cast marching out of a wrecked brick garage, or arriving in a series of mighty wheels. From armored personnel carriers and Ford Mustang convertibles to an all-silver DeLorean and a vintage Rolls Royce – all took turns arriving in the huge warehouse done up like a nightclub.
All of the Caten’s great archetypes got an outing. Mad saucy trapper girls in giant puffers and lots of legs; a trio of rockers with Kiss goth makeup but in three-piece suits; Klondike gold diggers off to an all-night rave; sexy vampy rock goddesses with bumster leather pants and fur coats with trains; and a beautiful black rodeo gal with mini cocktail made of bands of Western belts. Leading to the arrival with sirens of NYC police car, from which emerged a dominatrix leather police captain played by Brigitte Nielsen escorted two white collar criminals. You guessed it – Dean and Dan. Before, amid huge roars, JT and Doechii took the floor in a call and response duet surrounded by the entire cast.
Renzo Rosso’s fashion holding company OTB suffered a setback in 2024, seeing revenues fall 4.4 percent at constant exchange rates to 1.8 billion euros, recording EBITDA of 276 million euros and EBIT of 44 million euros. Retail (+7.4 percent), Japan (+16.3 percent) and North America (+13.3 percent) held up. Among the brands in the portfolio, Maison Margiela (+4.6 percent) and Diesel (+3.2 percent) performed positively.
In the past fiscal year, the Vicenza-based company sustained investments of 77 million euros, with a focus on the expansion of the retail network and major innovation projects.
The possible departure of DSqyared2 will be seen as a setback for Rosso, who has long praised the brand as a dynamic creative force. Like every season, Rosso sat front row at the 30thanniversary show in Milan on February 25th.
“Staff International will continue to act with the utmost transparency and determination to protect its rights, honour its contractual commitments and safeguard its reputation, and reserves the right to take any further action,” read the last paragraph in Rosso’s company statement.
In a major strategic change Dsquared2 has ended its long-time licensing agreement with Staff International, the key operating company of Italian fashion billionaire Renzo Rosso.
Dean & Dan Caten, by Giampaolo Sgura
“Dsquared2 Group announces the immediate termination of its licensing agreement with Staff International S.p.A. Consequently, the Group will assume direct control over the production and distribution of its Ready-to-Wear collections,” the Milan-based house said in a terse release Saturday.
“This transition takes effect immediately and will commence with the upcoming Pre-Collection Spring/Summer 2026 sales campaign,” added Dsquared2, which was founded by twin brothers Dean and Dan Caten over three decades ago.
Staff International is the key production wing of Only The Brave, the holding company of Rosso, which also owns Diesel, Marni, Maison Margiela and Jil Sander, as well as the manufauring license of Viktor&Rolf.
“Dsquared2 Group expresses its sincere gratitude to all those who have contributed to this collaboration and looks forward to fostering continued partnerships in the future,” the release added.
The agreement with Staff International dates back to 2002, and helped fuel the spectacular development of Dsquared2, the last runway brand in Milan to have grown into a major global fashion brand.
Born in Willowdale, Ontario, Dean and Dan Caten (Catenacci, originally) began their career path in fashion by moving to New York in 1983 to attend Parson’s School of Design. In 1991 they arrived in Italy where in 1994, after numerous collaborations with major fashion houses, they first staged their debut runway collection. It marked the first in a long line of runway extravaganzas that would capture the attention of journalists and buyers for their unique brand of fashion, music and theatre.
The Catens went on to build a multi-million dollar business. And to dress everyone from Madonna in her iconic western video clip, “Don’t Tell Me”, to Beyoncé for her Super Bowl performance. The duo also has an impressive range, all the way to dressing the four-time English Premiership Champions, Manchester City. And a great HQ, a former electric energy headquarters converted into office, show-space, inn, gym and rooftop restaurant with swimming pool. They have become one of the city’s great fashion institutions without every losing the DNA of the Wild North. And famed for their ovations, where they take their bow in matching outfits – whether disco dragoons, Klondike trappers or matinee idols.
Leave it to the Canadian duo to stage an epic 30th anniversary show in Milan this past season, the cast marching out of a wrecked brick garage, or arriving in a series of mighty wheels. From armored personnel carriers and Ford Mustang convertibles to an all-silver DeLorean and a vintage Rolls Royce – all took turns arriving in the huge warehouse done up like a nightclub.
All of the Caten’s great archetypes got an outing. Mad saucy trapper girls in giant puffers and lots of legs; a trio of rockers with Kiss goth makeup but in three-piece suits; Klondike gold diggers off to an all-night rave; sexy vampy rock goddesses with bumster leather pants and fur coats with trains; and a beautiful black rodeo gal with mini cocktail made of bands of Western belts. Leading to the arrival with sirens of NYC police car, from which a dominatrix leather police captain played by Brigitte Nielsen escorted two white collar criminals. You guessed it – Dean and Dan.
And amid huge roars, JT and Doechii took the floor in a call and response duet surrounded by the entire cast.
Renzo Rosso’s fashion holding company OTB suffered a setback in 2024, seeing revenues fall 4.4 percent at constant exchange rates to 1.8 billion euros, recording EBITDA of 276 million euros and EBIT of 44 million euros. Retail (+7.4 percent), Japan (+16.3 percent) and North America (+13.3 percent) held up. Among the brands in the portfolio, Maison Margiela (+4.6 percent) and Diesel (+3.2 percent) performed positively.
In the past fiscal year, the Vicenza-based company sustained investments of 77 million euros, with a focus on the expansion of the retail network and major innovation projects.
The departure of DSqyared2 will be seen as a setback for Rosso, who has long praised the brand as a dynamic creative force.
Entertainment8 years ago