2017 was a difficult year for Nike. Mark Parker, Nike's chief executive officer, who earns $13.9 million from stock and option awards (according to regulatory filings), took a 71 percent reduction in compensation. In 2016, Parker earned $47.6 million, and CNNMoney listed him as one of the highest-paid CEOs in America.
Top executives of the Oregon-based company also took pay cuts.
Nike faced a rough year due to the company's poor sales in North America, a sinking stock price and intense competition from Adidas. With a decline in revenue, the stock price is expected to suffer.
Further, the apparel and footwear company announced plans to slash more than 1,000 workers last month.
Nike experiments products on Amazon
Nike's e-commerce is hurting their sales, as more consumers buy low-priced products on Amazon. Parker confirmed in March that Nike would collaborate with Amazon to test Nike's products on the Amazon's e-commerce platform. Customers can buy Nike's products through unlicensed and licensed third-party vendors on Amazon.
"We're looking for ways to improve the Nike consumer experience on Amazon by evaluating the way the brand is presented and increasing the quality of product storytelling," Parker said at the time.
Nike's online sales forecast
Nike has created an online business that generates more than $2 billion in sales through digital platforms including nike.com and its applications.
The company focuses on building a sales strategy in Nike stores and through other digital channels to reach consumers in a direct and personalized approach.
Last month, Nike reached partnership deals with Instagram and Amazon in an effort to draw consumers to purchase products through apps and other digital channels. The report from investment banking company Goldman Sachs indicated that millennial consumers have a strong preference for digital stores.
"Taking this step would give Nike direct economic exposure to a large and fast growing distribution channel while improving the brand presentation and expanding access to Millennial shoppers," Goldman Sachs noted in June.
Nike is projected to reach $7 billion in online sales by 2020. Additionally, by the end of 2020, the company aims to target $50 billion in overall sales. While Amazon dominates the internet retail market, Nike is ranked at the 37th spot in the e-commerce retail list, according to e-commerce research Digital Commerce 360 (Internet Retailer).
