Nike sales fall 12% in Q4 as turnaround efforts continue
Nike sales fall 12% in Q4 as turnaround efforts continue

Nike sales fall 12% in Q4 as turnaround efforts continue

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Nike sales fall 12% in Q4 as turnaround efforts continue

Nike sales fell 12 per cent year-over-year in the fourth quarter to $11.1 billion. Direct sales were down 14 per cent to $4.4 billion, while wholesale fell 9 per cent. Nike has made an effort to rebalance its retail split after pulling out of some key wholesale partners. For the 2025 fiscal year ending on 31 May, sales were $46.3 billion, down 10 per cent Year-Over-year. CEO Elliott Hill expects the worst is behind it after an extended sales slump.

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Nike is not out of the woods yet, but CEO Elliott Hill expects the worst is behind it after an extended sales slump for the sneaker giant.

Reported sales fell 12 per cent year-over-year in the fourth quarter to $11.1 billion, Nike said on Thursday, a smaller drop than analysts anticipated and better than Hill’s own estimations last quarter that tariffs could drag sales down by the mid-teens in Q4. Shares rose 2 per cent in after-hour trading on the earnings announcement. Net income has shrunk in the past year to $211 million compared to $1.5 billion in 2024, as costly product development and innovation and marketing efforts weigh on the company’s bottom line.

Both Nike’s direct channels and wholesale revenue fell in the fourth quarter. Direct sales were down 14 per cent to $4.4 billion, while wholesale fell 9 per cent to $6.4 billion. Nike has made an effort to rebalance its retail split after pulling out of some key wholesale partners.

For the 2025 fiscal year ending on 31 May, sales were $46.3 billion, down 10 per cent year-over-year.

“While our financial results are in line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we’re making through our Win Now actions,” Hill said in a statement. “As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth.”

‘Win Now’ is the brand rehabilitation strategy Hill put in place after the former Nike veteran took over from CEO John Donahoe in September last year. Win Now recentres Nike’s focus on sports and athletes — an initiative currently underway in Paris, where the brand hosted “Breaking4” programming and related product teasers around Faith Kipyegon’s attempt to be the first female runner to break a four-minute mile. The strategy also revolves around refreshing Nike’s product assortment and revamping its marketing strategy.

Source: Voguebusiness.com | View original article

Source: https://www.voguebusiness.com/story/companies/nike-sales-fall-12-in-q4-as-turnaround-efforts-continue

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