The sporting goods company Nike recorded a significant decline in sales in the Olympic summer. In the first quarter, which ended at the end of August, revenue fell by ten percent year-on-year to $11.6 billion. The bottom line is that profits fell by 28 percent to 1.05 billion dollars (950 million euros). Nike wants to get the problems under control, among other things, with a change of boss: in mid-October, former top manager Elliott Hill will return from retirement to Adidas’ competitor and take over the top job.

His predecessor John Donahoe’s strategy included relying more on direct sales. The downside, however, was that the shelf space Nike gave up in stores was filled by competitors’ products. This made the rivals more visible to consumers.

In the last quarter, Nike weakened in both sales channels. Direct sales fell 13 percent to $4.7 billion. The trigger was a 20 percent drop in online business, while there was a one percent increase in Nike stores. Wholesale sales fell 8 percent to $6.4 billion.

Nike is currently undergoing an austerity program launched by Donahoe that aims to cut costs by around $2 billion. Around two percent of jobs are affected.