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Volume 27 No. 10
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New Nike CEO Donahoe Talks About Coronavirus, Kobe Bryant, Culture

New Nike CEO JOHN DONAHOE said he spent his first week at Nike in China and Japan "getting a chance to see firsthand the incredible connection Nike has with consumers, not just here in the U.S.," and they "deeply connect with Nike's product and with the brand and what it stands for." Appearing on CNBC's "Closing Bell," Donahoe said of how the coronavirus is affecting business for Nike, "Roughly half of our stores in China, both our Nike-owned stores and our partner stores, are temporarily closed and those that are open are operating under reduced hours and so, there's lower traffic and that's why we announced yesterday there will be a reduction in our China results this quarter." Donahoe added, "We remain very confident around China as an important opportunity and market in the medium to long-term and we're hopeful that the situation there resolves itself over the coming weeks and we'll stay close." 

PAYING RESPECTS: In the wake of KOBE BRYANT's death, Donahoe said Nike is "working on how we respond" to whether it re-releases Bryant's signature shoes. He said the company also is "working on some things with the NBA." Donahoe: "We're working on ways we can appropriately honor Kobe and his family, and also the others that were involved in that." 

COMPANY CULTURE: On issues with Nike's culture, Donahoe said the company has got a "very strong culture, I've gotten to see that firsthand." Donahoe: "Diversity and inclusion are core essentials to an innovative culture and that's something Nike has been working on and focusing on, making progress on and it's something I care deeply about" ("Closing Bell," CNBC, 2/5).