Nike Leadership Is Reviving Brand by Refocusing on Sports

Nike wants to go back to its athletic roots. To combat falling sales and weak brand demand, company leadership intends to focus on sports and premium-priced products moving forward.

“Our clear priority is to return sport to the center of everything we do,” said CEO Elliott Hill in an earnings report. “We’re taking immediate action to reposition our business, so we can get back to driving long-term shareholder value.”

On a recent earnings call, Hill committed the company to strategically rebuilding retail partnerships through innovation as well as improved timing of promotions and discounts. This is in stark contrast with Nike’s 2020 approach when it leaned heavily on direct-to-consumer sales.

Nike will continue pushing running shoe brands Pegasus, Vomero, and Structure. Various styles of each shoe will be launched in 2025, each with distinct price points. Other sports shoe lines, like Air Max 95, will also be highlighted.

Nike’s Poor Second Quarter

In the second quarter of fiscal year 2025, Nike posted a 7.7% net revenue drop to $12.4 billion compared to the same period last year. Most analysts predicted the brand’s earnings per share in the quarter would reach 63 cents, but the sneaker giant reported 78 cents a share.

According to CFO Matthew Friend, September and October saw reduced customer traffic and retail sales. Yet, online and in-store traffic moved in a more positive direction in November, which ultimately helped Q2 earnings meet company projections.

“Nike’s second-quarter financial performance largely met our expectations, as we continue to make progress in shifting our portfolio,” said Friend in the earnings report. “Under Elliott’s leadership, we are accelerating our pace and reigniting brand momentum through sport.”

Nike’s recent financial troubles had adverse effects on other retailers that continued to heavily stock and promote the shoe brand. After suffering a profit loss of $33 million in the third quarter, Foot Locker executive Frank Bracken said Nike’s struggles are partially to blame for its own dismal financial situation.