Nike has experienced significant challenges over the past few years but is currently undergoing a turnaround under a new CEO, Elliott Hill, who took over last year to steer the company back to its athletic apparel roots. The company faced a sharp decline in demand across key markets such as China and Europe around 2023, which contributed to revenue drops and a nearly $27.5 billion loss in market value at one point. The former CEO John Donahoe's focus on digital direct-to-consumer sales and cost cutting, including workforce reductions, failed to sustain growth, leading to strategic missteps and loss of market share to emerging competitors like Hoka and On Running. Despite these setbacks, Nike has begun to show signs of recovery in 2025, with recent quarterly results surpassing profit expectations and a slight revenue increase. The company is focusing on innovative sports-specific products and rebuilding wholesaler relationships. Key segments like running, training, and basketball are seeing double-digit growth in North America. However, challenges persist, including slow recovery in China, tariff impacts, and competitive pressures. Nike is also introducing new product lines and collaborations, such as the NikeSkims women's athleisure collection in partnership with Kim Kardashian, to regain consumer interest. Investor optimism is growing, with some analysts predicting a continued upward trajectory for Nike's stock this year.
Additionally, Nike is preparing special product launches such as the Nike Ja 3 Halloween edition to maintain momentum among younger consumers and enhance its sportswear appeal.
