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Nike Heads Outdoors in Search for New Sources of Growth

While Nike's Q1 reported missed revenue estimates amid a change in CEO, surgining Chinese stocks could prove to be a turning point. Managing director of TD Cown John Kernan explains.

(Bloomberg) -- Nike Inc., on the hunt for new growth avenues following a rocky year, is preparing a global push for its outdoor business, All Conditions Gear, which makes hiking gear such as waterproof boots, ripstop jackets and day packs.

“We are now investing more resources in this incredible growth opportunity,” Nike presidents Heidi O’Neill and Craig Williams told staff in a memo viewed by Bloomberg News. O’Neill, who leads the consumer and product division, and Williams, who is in charge of geographies and marketplace, added they’ll “continue to drive the new ACG investment across global, geo and city teams throughout the organization in the coming months.”

Details of the plans for the business, known as ACG, weren’t shared with employees. The executives said that there’s still work to be done on ACG’s strategy, organizational design and operating model.

The business focuses on trail running and hiking, with products that range from zip-off skirts to day packs and mittens.

As part of the new push, Angela Dong, Nike’s top executive in its Greater China region, will take over ACG, adding to her responsibilities in Shanghai, according to the memo. China will be an immediate focus for the business, the executives said.

Scott LeClair, who previously ran action sports at Nike, has been named vice president and general manager of the ACG division, working out of headquarters in Oregon.

Nike didn’t immediately respond to a request for comment. 

Outdoor gear is a crowded area, and Nike will be up against brands such as Patagonia, the North Face and Arc’teryx.

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