Sales fall at Nike, with new CEO aiming to turn business around

Oregon, US – Nike has reported an 8% decline in sales for the second quarter of its 2025 fiscal year, falling from $13.4bn in the 2024 quarter to $12.4bn this year. On a currency-neutral basis, the drop was 9%.

Revenues in its Nike Direct business fell more sharply, with a decline of 13% to $5.0bn, while wholesale revenues held up better, falling by 3% to $6.9bn. Inventories were flat, at $8.0bn.

However, changes are under way at the business, after former commercial and marketing head Elliott Hill came out of retirement to take up the reins as president and CEO in October, replacing John Donahoe. He has started the process of returning the business to its sports-focused roots, and is looking to reverse the damage caused by an overwhelming focus on the Nike Digital business.

“Prioritising Nike Digital revenue has impacted the health of our marketplaces,” he said at the results conference. “We will build back an integrated marketplace across Nike Direct and wholesale. Our marketplace will be consumer-led, putting our best product and presentation in the path of the consumer wherever they choose to shop.”

He said that he has seen that traffic in Nike Direct, both digital and physical, has softened because of a lack of newness in product. In addition, he said, a failure to deliver inspiring stories has led to the company becoming far too promotional, moving to a “push” model.

“Entering the year, our digital platforms were delivering roughly a 50-50 split of full price to promotional sales,” he said. “The level of markdowns not only impacts our brand, but it also disrupts the overall marketplace and the profitability of our partners. We will return Nike Direct, digital and physical, to premium destinations that lead the sports industry, that’ll elevate the consumer experience and be the ultimate representation of the Nike brand. It’s where we’ll offer our most complete assortments, tell deep product stories, and share our passion for sports.”

He added that being premium means full price. “We’ll focus promotions during traditional retail moments, not at the consistent levels we are today,” he said. “And we will leverage Nike value stores to profitably move through any excess inventory. The final action we prioritise is building back and earning the trust of our key wholesale partners.”