Nike has faced significant challenges recently, culminating in a loss of $25 billion in market capitalization in a single day following disappointing earnings. The company's stock has fallen over 30% year-to-date, resulting in a total decline of more than $60 billion. A former Nike branding executive attributed these issues to strategic decisions made in 2020 under CEO John Donahoe, which prioritized the direct-to-consumer business model but ultimately backfired. The executive noted that the company's shift towards a data-driven approach led to investments in less effective strategies, while strong talent has departed, leaving the organization over-resourced yet lacking in resourcefulness. This combination of factors has contributed to a perceived decline in brand equity, product innovation, and distribution capabilities at Nike.