UPDATE: Nike CEO Elliott Hill has completed his first year at the helm of the sportswear giant, receiving a B grade from analysts as he works to revitalize the company amid declining sales and stiff competition. Hill, who returned to lead Nike on October 14, 2024, faces significant challenges as the brand strives to reclaim its market position.
In the quarter preceding Hill’s appointment, Nike’s revenue plummeted 10% year over year to $11.6 billion. Analysts are cautiously optimistic about his “win now” strategy, which aims to shift the focus back to core sports like running and basketball, rather than being overly reliant on retro styles. Some analysts report early signs of recovery, including a 20% growth in Nike’s running business last quarter, yet they note that the turnaround is taking longer than anticipated.
Hill’s ambitious plan includes improving relationships with wholesale partners and reducing heavy reliance on direct-to-consumer sales, which have seen a decline of 12% in digital revenues year-over-year. Notably, wholesale revenues climbed to $6.8 billion in the first quarter of fiscal year 2026, reflecting Hill’s efforts to mend relationships with key retailers.
Despite an initial surge in Nike’s stock, which rose 8% upon Hill’s appointment, the shares have since declined nearly 19%. Goldman Sachs analysts indicate that the stock lacks catalysts for significant growth until there is clearer visibility on brand recovery.
In an effort to connect with female athletes, Nike launched its first Super Bowl ad in nearly 30 years, showcasing star female athletes. The company is also expanding its partnership with the WNBA, signaling a renewed commitment to women’s sports.
Hill has acknowledged that while the path to recovery is fraught with challenges—including potential tariff costs expected to reach $1.5 billion—he remains focused on long-term objectives. “Our comeback will take time, and our progress won’t be linear,” he stated during a September earnings call.
As Hill navigates these turbulent waters, analysts remain hopeful about Nike’s future. The consensus is that although some strategies may take longer to yield results, the groundwork being laid now could position Nike for a stronger market presence moving forward.
Expect continued updates as Hill’s strategy unfolds and the market responds.
