Nike Struggles with Sales Decline: Strategic Repositioning Under Scrutiny
Amsterdam, vrijdag, 27 juni 2025.
Nike is facing ongoing challenges in the fourth quarter of fiscal year 2025. Despite slightly better performance than analyst expectations, the company saw sales drop by 12% to $11.1 billion. CEO Elliott Hill acknowledges that the results do not meet Nike’s standards and has launched a ‘Win Now’ strategy to turn the tide. The company is experiencing declining sales across all geographical regions, with particular challenges in digital sales and wholesale channels. The most notable challenge is the 16% revenue decline of the normally successful Jordan Brand, indicating that even the most robust brands within Nike are currently struggling with market changes.
Financial Results Under Pressure
Nike has seen sales decline by -11.905 percent to $11.1 billion in the fourth quarter of fiscal year 2025. The company performed slightly better than analyst expectations, but the results remain concerning [1][2]. Net income dramatically fell by 14.067 percent to $211 million, underlining the company’s challenges [3].
Strategic Repositioning: Win Now
CEO Elliott Hill has introduced the ‘Win Now’ strategy to reverse the downward trend [4]. This approach focuses on redesigning product assortments, strengthening sports-focused marketing, and improving consumer connections [5]. The company acknowledges that current results do not meet Nike’s standards [6].
Challenges Across Market Segments
Nike is experiencing declines in all geographical regions, with a particularly notable 16% revenue drop for the Jordan Brand [7]. Wholesale revenues declined by 9% to $6.4 billion, while direct sales decreased by 14% to $4.4 billion [8]. Football shoe sales plummeted by 13% to $7.2 billion [9].
Future Perspectives
Nike expects sales and profit declines to moderate in the coming period [10]. The company plans strategic shifts, including reducing its supply chain in China from 16% to just a few percentage points [11]. Additionally, Nike is returning to Amazon with a selected range of shoes and accessories [12].