How sneaker maker Nike fell behind in the innovation race

Nike made a swift comeback earlier this month in the super-shoe fight when marathon runner Kelvin Kiptum set a world record while wearing a new iteration of the company's Alphafly 3. But the sneaker maker is losing steam in other races.

- Inti Pacheco

Competitors such as Hoka and On are gaining a foothold among runners and with people who are looking for something comfortable to wear to work or school. Adidas and New Balance are also making headway in the market for streetwear by bringing back old models in dozens of colorways, moves similar to those from Nike's own playbook.

Nike said sales of footwear in North America-its largest market-fell 2% in the latest quarter. Higher prices for Nike shoes weren't enough to offset a 10% decline in sales volume, the first decline in more than a year.

Nike and other consumer-goods companies have been hurt by rising prices that are causing consumers to rethink their spending plans. Nike remains the world's largest seller of athletic footwear and apparel, generating $48.7 billion in revenue from its namesake brand in the year ended May 31.

Still, Nike executives have said they are working to improve product marketing and assortments and also drive more meaningful connections with everyday runners.

"We are focused and mobilized to address areas where we need to raise our game," said Chief Executive John Donahoe in late September during an earnings call with analysts.

Del Shaffer, a Realtor in Charleston, S.C., used Nike running shoes for decades but last year traded his Free RN Flyknit for a pair of Hoka Mach 4 because he wanted something softer, with more cushioning. The 44-year-old runs every day after dropping his children off at school and said he felt a huge change once he switched to Hoka because of the shoe's materials.

"They give me that cushion, and I'm kind of looking forward to not having knee surgery when I'm older," Shaffer said.