Nike shares have fallen 47% this year. Retail CEO Jan Kniffen says AI agents could steer shoppers away from legacy brands.
Nike already faces shrinking sales. Revenue fell 4% in the latest quarter, and the company guided to a high-single-digit drop this fiscal year. Now, AI’s disruption continues to stretch into different area’s include a Wall Street powerhouse.
Who Controls the Shelf When AI Agents Do the Shopping?
Kniffen, CEO of J. Rogers Kniffen Worldwide Enterprises, appeared on CNBC‘s Power Lunch. He said AI agents will soon pick and buy products for shoppers.
A shopper who asks for running shoes, not Nike, may never see the brand first. Rivals such as Hoka or On could win on fit and price.
Meanwhile, the hosts questioned the idea, noting a wrong pick means a return and extra hassle.
However, Kniffen said inertia could shield brands, because many shoppers still ask for Nike by name.
Nike has not sat out the shift. ConsumerGoods reported in May that Nike planned to sell inside Google’s Gemini chatbot and AI Mode search from June. Still, the agent could pick a rival.
Does Scale Win the Agent Era?
Kniffen argued that big players eventually win, as Amazon and Walmart did after the internet boom. He called Walmart the best AI operator in America, citing its AI use across supply chain, stores, and warehouses.
Nike has scale, with $11.2 billion in quarterly revenue, but sales fell 4% according to its results. CNBC reported that CEO Elliott Hill said performance products remain too small to offset losses elsewhere.
Sportswear fell by a low-double-digit percentage, and Greater China sales dropped 26% excluding currency swings. Nike also announced layoffs beginning in 2027.
Citi analysts summed up the shift in a Friday note.
“Nike is turning into a cost-cutting story.”
Citi analysts, CNBC
Nike closed at $33.96 on October 5, about 47% below its 2025 year-end close. It had already become the Dow’s worst performer by mid-September. Best Buy, Target, and Victoria’s Secret have done well this year. Agents could widen the split between winners and losers.
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